NewJeans vs. ADOR: Potential Contract Termination Due to Contract Termination and a New Legal Approach

HYBE Signboard

NewJeans Announces Termination of Exclusive Contract with ADOR! What are the Legal Issues?

The group NewJeans has announced its intention to terminate its exclusive contract with its agency, ADOR. In an emergency press conference last night, NewJeans stated that they judged the agency lacked the will and ability to protect its artists and declared their intention to pursue independence without further legal disputes. This news shocked fans and the industry alike.

With NewJeans' announcement to terminate their contract with ADOR, various opinions are emerging regarding the legal feasibility. Notably, lawyer Lee Hyun-gun (representative of Sewol Law Office), a former judge, predicted that this declaration is " fully legally feasible" attracting attention.

NewJeans press conference scene

Contract Termination Conducted Using the Same Method Used by HYBE with CEO Min Hee-jin

Lawyer Lee Hyun-gun analyzed that even without a preliminary injunction lawsuit, because ADOR would have to file a lawsuit first, the possibility of NewJeans achieving independence is high. Generally, disputes between artists and agencies begin with applications for preliminary injunctions, but NewJeans has chosen a different approach.

There are opinions that NewJeans' approach is identical to the method HYBE used with ADOR's former CEO, Min Hee-jin. HYBE notified Min Hee-jin of the termination of their shareholder agreement and waited for Min Hee-jin to apply for a preliminary injunction to invalidate the termination. NewJeans is employing the same tactic, waiting for the agency's response.

Acting first and addressing legal disputes through litigation saves the acting party considerable time. In other words, if NewJeans had claimed contract termination or invalidation through litigation, the legal battle would have been protracted.

"Independence Possible Without Litigation?" Analysis from the Legal Community

Past Supreme Court precedents show cases where a contract was terminated due to the other party's fault, and subsequently, the other party filed a lawsuit to confirm the invalidation of the termination or to claim damages for breach of contract. Many believe that NewJeans' announcement is in line with these precedents.

Fans, in particular, expect NewJeans' announcement to mark a turning point in contract issues between artists and agencies, going beyond a simple agency dispute.

Lawyer Lee Hyun-gun emphasized, “NewJeans’ decision is a completely new approach, differing from existing patterns of conflict in the entertainment industry,” and added, “The contract termination declaration is highly likely to be legally effective.”

The Impact of the NewJeans Case on the Industry

NewJeans' announcement is assessed not merely as a single group's independence issue but as an incident setting a new standard for the relationship between artists and agencies. Previously, in the entertainment industry, when artists and agencies experienced conflict, it often resulted in protracted litigation or resolution through legal processes such as preliminary injunction applications.

However, NewJeans clearly pointed out the agency's fault and declared independence, demonstrating a new strategy to prompt the agency to file a lawsuit. This approach is highly likely to become a significant precedent in future contract issues between artists and agencies.

Furthermore, this incident is expected to significantly impact not only fans but also other artists. Depending on how NewJeans' declaration of independence proceeds and the outcome, changes may occur in the entertainment industry's legal practices.

We'll update you immediately if any further news about NewJeans' actions emerges! 😊

Past Articles Related to NewJeans

• NewJeans' Bold Move, Contract Termination Announcement and Core Issues of the Penalty Clause Dispute: https://showbuzz.durumis.blog/ko/newjeans-contract-termination-dispute-divrb9id
• Conflict Between HYBE and ADOR's CEO Min Hee-jin: https://rebeka.durumis.com/ko/hybe-and-ador-minheejin-ceo-conflict-key-events-summary-and-analysis-8hmgq5mi
• The Storm on ADOR's (Former) CEO Min Hee-jin's Internal Anonymous Bulletin Board: https://rebeka.durumis.com/ko/ador-minhee-jin-ceo-company-employees-blind-storm-vibbs4p9

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