By Kevin Kim
In the fast-moving world of K-pop, controversies are nothing new, but something feels different about the ongoing dispute between NewJeans, its label Ador and its parent company HYBE. What began as an internal leadership struggle has escalated into a public debate about artist autonomy, corporate control and fair management practices. With the members of NewJeans publicly challenging their management while agencies defend their position, the controversy highlights a pivotal moment for K-pop — a balancing act between creativity, ethics and business realities.
At the heart of the issue lies the growing tension between Ador’s displaced CEO Min Hee-jin and HYBE. Widely regarded as the creative mind behind NewJeans’ fresh, innovative concept, Min quickly became a respected figure within K-pop’s competitive industry. However, in mid-2024, HYBE accused Min of attempting a “hostile takeover” of Ador, claiming a breach of trust. Min denied the allegations, framing the situation as HYBE’s attempt to consolidate power over the label and its artists.
What truly set this controversy apart was NewJeans’ response. In an almost unprecedented move, the members — Minji, Hanni, Danielle, Haerin and Hyein — released public statements expressing their distress over the situation. They accused higher management of creating a toxic environment and spoke about their fears of “suffering even more harm in the future.” Such open defiance marked a rare moment in K-pop, where idols traditionally avoid direct conflicts with their agencies.
The NewJeans controversy has once again raised concerns about the K-pop system — particularly its reliance on rigid contracts and hierarchical power structures. Artists, despite being the public face of success, often lack control over their careers. Contracts govern everything from creative decisions to their professional and personal lives. For many, this leads to emotional and psychological distress, which has been highlighted in previous high-profile disputes.
The TVXQ case of 2009 exposed “slave contracts” that bound idols to long, exploitative terms, sparking public outrage and calls for reform. Years later, singer Lee Seung-gi revealed he had been unpaid for years, a case that renewed scrutiny of financial transparency. Even battles over group names, such as the trademark dispute involving The Boyz, demonstrated how agencies often maintain ownership of an artist’s professional identity.
NewJeans’ willingness to speak out reflects a generational shift. Today’s idols are more aware of their rights and less willing to remain silent. Their actions signal a growing desire for fair treatment, creative input and autonomy in an industry where silence has long been the norm.
From the management perspective, however, the situation is far from simple. Agencies like HYBE operate in a high-stakes environment that demands significant financial investment. Training, branding and marketing an idol group to global success is a yearslong process that comes with immense costs. Contracts are designed to protect these investments and ensure stability, particularly in an industry where trends shift quickly, and the risks of failure are high.
For HYBE, the NewJeans controversy has real consequences. The company’s market valuation reportedly dropped by $420 million, reflecting investor concerns over the dispute and its potential fallout. Agencies are not just balancing the needs of their artists — they are also accountable to shareholders who expect consistency and profitability. To management, enforcing contracts is about safeguarding the sustainability of the business model that has propelled K-pop to global prominence.
Adding another layer to the discussion is the role of the Korean government. In response to past controversies, the government introduced standardized contracts to address unfair terms and provide legal protections for artists. Fixed-term agreements and stricter oversight were meant to prevent exploitation, particularly for underage trainees and debuting idols. While these reforms marked progress, the NewJeans case reveals ongoing gaps. Power imbalances persist, and artists often still lack meaningful leverage in negotiations.
Fans, too, have become central to the controversy. NewJeans’ supporters have been vocal on social media, amplifying the group’s grievances and demanding accountability from HYBE. This reaction underscores a shift in fandom culture. Fans are no longer passive consumers; they are active participants who can sway public opinion and even financial outcomes. HYBE’s stock decline is a testament to the influence fans now hold — a power that agencies cannot ignore.
The broader question is whether the K-pop industry can find a middle ground. NewJeans’ case reflects a conflict that has simmered for years: the need to balance artist freedom with the realities of business and investment. Both sides have legitimate concerns. Artists deserve fair treatment, creative independence and the right to advocate for themselves. At the same time, agencies need stability and a return on their investments to ensure the long-term success of their artists and the industry as a whole.
For the industry to evolve, compromises must be made. Contracts could allow for more flexibility as artists grow in their careers. Greater transparency in financial and creative decision-making could reduce distrust and miscommunication. Improved mediation processes could resolve disputes privately before they escalate into public crises.
In many ways, the NewJeans-HYBE dispute represents a defining moment for K-pop. It challenges the industry to reckon with its structural flaws while offering an opportunity to build a healthier, more sustainable system. If this controversy leads to meaningful reforms, it may not only redefine NewJeans’ career but also set a new precedent for artist-agency relationships.
At its best, K-pop has thrived as a balance between artistry and business — a system where creativity meets structure, and artists achieve global success under a carefully managed framework. The NewJeans controversy reminds us that this balance is delicate and must evolve with the times. Whether the industry chooses to embrace change will determine its future.
Kevin Kim (kevin.kim@routenote.com) is the head of Asia for RouteNote, a global music business company. He worked for YG PLUS and CJ E&M Mnet before joining RouteNote.