NewJeans' Bold Move: Contract Termination Announcement and Key Issues Surrounding Penalty Payments

Hello! Today, we'll be discussing the conflict between the rising K-POP icon, NewJeans, and its agency, ADOR. NewJeans has taken a drastic step by announcing the termination of their exclusive contractwith ADOR, clearly stating that they will not pay any penalties. We will examine the background of this incident and the claims of both sides.

NewJeans' press conference on the afternoon of November 28th

NewJeans Announces Contract Termination…Why Refuse to Pay Penalties?

At midnight on the 29th, NewJeans unilaterally announced their intention to terminate their exclusive contract with ADOR. Their declaration of not paying penalties is at the heart of the controversy.

• NewJeans' Claims
  • Member Hyeinstated, “We have not violated our exclusive contract, and we have worked our hardest until now,” emphasizing that “there is no reason to pay penalties.”
  • The reason for the contract terminationis that ADOR and its parent company, HYBE, violated the contract terms.

NewJeans' press conference on the afternoon of November 28th

The ‘Exclusion of Third-Party Interference’ Clause in the Contract is the Key Issue

NewJeans' claims stem from a specific clausein the contract.

• Core Content of the Contract Clause
  • If a third party interferes with NewJeans' entertainment activities, the agency must take necessary measures to prevent it.
  • If the agency violates this, NewJeans can terminate the contract.

NewJeans claims that they received unfair treatment, such as the girl group “ILLIT” from HYBE's sub-label Belift Lab imitating their concept.

• Incident involving Hanni
  • NewJeans member Hanni met ‘ILLIT’ and their manager at the HYBE building, and the manager reportedly told her to “ignore” them. This was revealed by Hanni.
  • NewJeans and their fans considered this workplace bullyingand raised the issue.

NewJeans considered these events to constitute ‘third-party interference’as stipulated in the contract.

NewJeans' press conference on the afternoon of November 28th

NewJeans vs. ADOR: The Stark Differences in Their Positions

ADOR immediately refuted NewJeans' claims.

• ADOR's Position
  • “We regret that NewJeans held a press conference announcing the contract termination before receiving a reply to the notice of certification sent on the 13th.”
  • “ADOR, as a contracting party, did not violate the contract. The claim that trust has been broken cannot be grounds for contract termination.”

NewJeans stated that they “will continue their entertainment activities even after the contract termination,” while ADOR countered that “according to the contract, future schedules must also be carried out with ADOR.”

NewJeans' press conference on the afternoon of November 28th

Possibility of Legal Dispute? Penalty Amount Could Reach up to 600 Billion Won

With both sides holding firm to their positions, legal action seems inevitable.

• Penalty Amount
  • In the entertainment industry, it is estimated that NewJeans' penalties could reach at least 300 billion won and up to 600 billion won.

Whether NewJeans can continue their activities after the contract termination announcement, and how their future activities will unfold, largely depends on the court's decision.

NewJeans and ADOR Conflict: Background and Outlook

NewJeans' contract termination announcement is attracting attention as a significant case that could impact the overall entertainment industry contract relationships, not just a simple financial issue.

• Background
  • A case where internal conflict between HYBE and its sub-labels has surfaced.
  • Different interpretations of the contract clauses and the agency's obligations.
• Outlook
  • If both sides fail to reach a compromise, it is highly likely that the matter will be decided in court.
  • This process is expected to further stimulate discussions on entertainment contract culture and rights protection.

The conflict between NewJeans and ADOR raises significant issues for the entire entertainment industry beyond contractual matters. The public and fan interest is high; the future direction of their activities warrants close attention.