The legal dispute between NewJeans and ADOR over their exclusive contract continues. The second hearing took place today (June 5), and no NewJeans members were in attendance.
On Thursday, the Seoul Central District Court’s Civil Agreement Division, presided over by Judge Jeong Hoe-il, is overseeing the case. The first hearing in April saw conflicting views on the contract’s validity. Both parties stick to their stances even in the second round of arguments.
During the hearing, the court asked legal representatives of ADOR and NewJeans a key question: “Do you really have no intentions of reaching an agreement?”
NewJeans’ side stated
The trust relationship has completely broken down. We’ve crossed a river we cannot return from. We need to consult with our clients, but reaching a settlement won’t be easy.
In contrast, ADOR’s side maintained its stance of working with the group in the future. The agency has repeatedly expressed its desire to meet with the members and discuss their concerns in a meeting. They stated,
If the court reaches a conclusion, we believe an agreement can be easily reached afterwards.
Following a breakdown in trust, NewJeans announced their intention to terminate their contract with ADOR and HYBE last November. ADOR responded by suing the group to uphold the validity of their exclusive contracts and prevent them from pursuing independent advertising deals.
The lawsuit was aimed at maintaining their agency status. The court sided with the label, granting the injunction, which led to NewJeans’ inability to operate independently and a temporary halt to their activities after the Hong Kong ComplexCon event.
The court also approved the label’s request for an indirect compulsory fine against NewJeans. This meant that if the group pursued independent activities without ADOR, they would each be fined 1 billion won. Consequently, if NewJeans, with its five members, were to operate independently, they would owe ADOR a total of 5 billion won per activity.
The first trial for the contract validity lawsuit was held on April 3, where NewJeans claimed unfair treatment and ADOR refuted the claims. The conflict arose when former ADOR CEO Min Hee Jin was removed from her position last August for an attempt to take over the label. NewJeans members publicly supported Min and expressed their desire to continue their journey with her.
The five-member group claimed that the “new ADOR” was different from the previous one, under the management of Min Hee Jin. They argued that no new producer was arranged 6-7 months after their attempt to dismiss ex-CEO Min.
During the first hearing, ADOR pointed out
It’s absurd to say that ‘NewJeans without Min Hee Jin can’t exist’. She wasn’t ousted, she left on her own. She said she wouldn’t do it unless she was made CEO despite proposals for producing.
Although former CEO Min Hee Jin contributed to NewJeans’ current success, it’s absurd to say that NewJeans can’t exist without her. As a subsidiary of HYBE, the top company in the industry, we can find and support another producer comparable to Min Hee Jin.
In response, the NewJeans side countered,
ADOR claims that producing with another producer is possible, but if they truly intended to do so, they should have prepared an alternative long before dismissing Min as CEO. Despite having around 6-7 months between attempting to dismiss Min and notifying contract termination, they didn’t prepare a contingency plan.
After the first hearing, the court noted that the usual grounds for terminating a management contract don’t apply in this case. Instead, the focus should be on the abstract concept of a breakdown of trust.
Meanwhile, NewJeans and ADOR will present arguments and related evidence supporting their claims during third trial on July 24.
