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NewJeans. (Photo by ADOR) |
[Alpha Biz= Reporter Kim Jisun] K-pop group NewJeans has officially announced the termination of their exclusive contract with ADOR, signaling their continued collaboration with former ADOR CEO Min Hee-jin. The group emphasized that the contract breach was the fault of ADOR and its parent company, HYBE, and asserted that they are not obligated to pay any penalties for the termination.
NewJeans members—Minji, Hanni, Danielle, Haerin, and Hyein—held an urgent press conference in Seoul’s Gangnam district on the afternoon of November 28 to address the matter.
Earlier, on November 13, NewJeans had sent a formal notice to ADOR demanding the rectification of significant contract breaches, including the reinstatement of Min Hee-jin as ADOR's CEO. They warned that failure to respond by November 28 would result in the termination of their contract.
During the press conference, the group declared, "As of midnight on November 29, we are terminating our exclusive contract with ADOR." Minji clarified, "This is not a provisional injunction but a direct termination due to ADOR and HYBE’s violation of the contract. Once the contract is terminated, it loses its validity, so there will be no obstacles to our activities. We see no need to pursue a court injunction."
Industry estimates suggest that the potential penalty for the contract termination could range from KRW 400 billion to 600 billion (approximately USD 300 million to 450 million). This calculation is based on the Fair Trade Commission's standard exclusive contract terms, which factor in the artist’s average monthly revenue over the last two years multiplied by the remaining months of the contract. ADOR's reported revenue for 2023 was KRW 110.2 billion, with NewJeans having five years left on their contract.
However, NewJeans argued that ADOR and HYBE’s breaches absolve them of any penalty obligations. The group firmly stated that the responsibility for the situation lies with their former agency.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
