Court Ruling Favors ADOR, Limits NewJeans’ Solo Endeavors

A recent legal decision has emerged concerning the dispute between the renowned K-pop ensemble NewJeans and their managing agency, ADOR, specifically regarding their exclusive contract.

On March 21, the Seoul Central District Court, presided over by Chief Judge Kim Sang-hoon, sided entirely with ADOR’s request for an injunction. This ruling restricts NewJeans from engaging in any advertisement contracts or independent entertainment activities without prior approval from ADOR.

Consequently, ADOR’s status as the management authority has been reaffirmed, placing the agency in a position of temporary control over the group’s activities.

This court ruling means that NewJeans members can no longer undertake entertainment projects independently, thwarting their previous attempts to promote themselves autonomously based on their assertion that the contract was nullified.

Reasons for the Court’s Favorable Ruling for ADOR

The court dismissed NewJeans’ claims that the reasons for terminating the contract were substantiated. In its findings, the court emphasized: “It is challenging to ascertain that the mutual trust essential to the exclusive contract has been irrevocably shattered based on the evidence provided.”

The court further remarked on NewJeans’ submitted claims and evidence:

“The materials provided thus far fail to demonstrate that ADOR breached significant contractual obligations. The argument presented does not convincingly show that ADOR has violated essential duties or that the trust between the parties has entirely disintegrated.”

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Moreover, the court rejected NewJeans’ assertion that ADOR’s decision to not reinstate the former CEO, Min Hee-jin, constituted sufficient grounds for contract termination, stating:

“ADOR possesses the capability to appoint a different producer; thus, the reinstatement of Min Hee-jin cannot be deemed a contractual prerequisite.”

Meeting Contractual Obligations

The court further highlighted:

“ADOR has complied with the majority of its principal obligations stipulated in the contract, including financial settlements. Moreover, it appears that NewJeans’ unilateral termination obstructed ADOR from fulfilling its responsibilities.”

This ruling also touched on contentious issues within the K-pop realm, such as the controversial “ditch NewJeans”term in a HYBE industry report and accusations of ILLIT, a new girl group from HYBE, copying NewJeans.

Concerning the internal HYBE document, the court clarified:

“The report contained various recommendations aimed at ensuring the success of NewJeans, with the phrase in question reflecting no intention of abandonment by HYBE.”

In terms of the plagiarism claims, the court asserted: “It is difficult to conclude that ILLIT’s concept replicated that of NewJeans. Additionally, the NewJeans’ concept lacks clarity as an intellectual property asset.”

Regarding the “album dumping” incident, where a HYBE staff member allegedly sought to manipulate NewJeans’ sales figures, the court expressed:

“This seems to be a factual correction influencing stock prices rather than an effort to discredit NewJeans.”

Divergent Reactions to the Ruling

The responses to the court’s verdict have been notably different from each party. ADOR released a statement expressing:

“We sincerely appreciate the court’s judicious ruling. Having our status as the agency for NewJeans legally affirmed, we will uphold our commitments to support the artists.”

With regard to their impending performance at ComplexCon in Hong Kong this weekend, ADOR confirmed: “The show will proceed under the banner of NewJeans from ADOR, and we will actively provide on-site assistance.” They further stated, “We look forward to engaging with the artists shortly for an honest discussion.”

In contrast, the members of NewJeans, whose claims were not upheld by the court, also shared a public response:

“We acknowledge the court’s decision; however, we believe it did not fully consider the significant breakdown of trust between us and ADOR.”

They continued:

“We intend to contest the ruling through the objection process and will bolster our claims with additional evidence. The principal lawsuit regarding the exclusive contract’s validity is ongoing, and we aim to demonstrate that the contract was lawfully terminated during the scheduled hearing on April 3.”

While the main case is still ongoing, historical precedents involving other K-pop groups, such as SECRET and LOONA, suggest that securing a favorable injunction often provides the winning side an advantage in subsequent trials. Consequently, industry analysts indicate that this ruling could inhibit NewJeans’ capability to operate autonomously in the future.

The court’s dismissal of the majority of NewJeans’ termination grounds complicates their position in the ongoing lawsuit while reinforcing ADOR’s legal standing.

If NewJeans were to defy the injunction and proceed with unauthorized activities, they could incur further legal repercussions, including civil suits for damages. This situation places considerable stress on the group, compelling them to reconsider their independent promotional efforts.

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