NewJeans Concludes Contract with ADOR without Penalty Payment

NewJeans Announces End of Contract with ADOR Amidst Controversy

On November 28, 2024, the popular K-pop group NewJeans, consisting of Minji, Hanni, Danielle, Haerin, and Hyein, convened an urgent press conference at the Space Share Samseong Station Center in Gangnam, Seoul. The purpose was to formally announce their decision to terminate their exclusive contract with ADOR.

During this pivotal conference, the group asserted that ADOR lacked both the intention and capability to adequately protect them, leading to their collective decision to exit the agency at 0 AM on November 29. “Trust has been broken,” they stated, emphasizing the difficulty in maintaining their current contractual agreement.

Financial Implications of Contract Termination

The potential repercussions of this termination are significant. With approximately five years left on their contract, industry analysts estimate that NewJeans may face a penalty in the vicinity of 500 billion KRW (about $380 million USD), calculated based on projected earnings that ADOR would lose during the remaining tenure.

“We really wish to be able to release new music for bunnies next year asap whenever and we really hope that we have the opportunity to meet you guys from all around the world… daily reminder NewJeans is not disbanding but redebuting with a better company! NJ NEVER D!E” pic.twitter.com/MatBzJ7FoO

— 🐰 (@_hannibunch) November 28, 2024

Statements from NewJeans

Addressing the financial concerns raised by media outlets, member Haerin explained, “We have never violated the exclusive contract.” She added that NewJeans had consistently fulfilled their obligations under the contract and insisted that any breach came from ADOR and HYBE, the agency’s parent company.

The Notice and Allegations

Earlier, on November 13, NewJeans issued a formal notice to ADOR, using their full legal names. The document outlined their grievances and demanded that the agency rectify what they identified as “serious breaches of the exclusive contract” within 14 days. If ADOR failed to comply, the group indicated that they would proceed with the termination.

Among their key claims were allegations that HYBE intended to “discard NewJeans and start fresh,” alongside demands for the reinstatement of former ADOR CEO Min Hee-jin. The group also sought a formal apology from a manager who allegedly advised Hanni to “just ignore it,” and called for action against practices that downplayed their achievements due to perceived “push-out tactics.” The deadline for ADOR to respond was set for November 28.

Reaction to ADOR’s Statement

Despite ADOR’s official response regarding one of the group’s members on November 27, Hanni expressed her dissatisfaction, indicating that the agency’s reply was insufficient and did not address their concerns adequately.