Will NewJeans Collaborate with Min Hee-jin to Build a “New Home” or Work with ADOR for a “Remodel”?

In the wake of Min Hee-jin’s resignation as an internal director at ADOR, the spotlight has shifted towards the popular girl group NewJeans. Often referred to as having “lost their mother,”NewJeans finds itself in a challenging situation within the wider HYBE ecosystem. Speculations abound that Min’s departure could instigate a legal confrontation regarding the termination of NewJeans’ exclusive contract.

The Onset of Legal Turbulence

The unfolding conflict traces back to April, coinciding with HYBE’s audit of ADOR. Min Hee-jin’s abrupt exit represents a significant escalation in a battle that industry experts predict could be just the beginning of a significant legal struggle. Following her resignation announcement on November 20, Min voiced serious allegations against HYBE, citing illegal audits, misinformation, and manipulation by the media. She has made it clear that she intends to terminate her shareholder agreement with HYBE and pursue legal action against the company for its alleged infractions.

Further legal maneuvers appear to be on the horizon, as Min has indicated plans to challenge numerous purported unlawful actions by HYBE and its subsidiaries, suggesting that this legal dispute may be both prolonged and complex. In April, HYBE had accused Min of attempting to assert control over ADOR, leading to an internal audit and efforts to remove her from the board—a move that has now backfired as she was reappointed in October, though her plea to regain the CEO position was ultimately rejected by the court.

NewJeans on the Verge of Change

Min Hee-jin’s resignation has certainly sparked heightened curiosity regarding the future trajectory of NewJeans. The group seems to be at a transformative juncture, having publicly voiced their discontent in September during a YouTube live stream, where they called for Min’s reinstatement. On November 13, they escalated their stance by issuing a formal notice demanding rectifications of serious breaches in their exclusive contract, warning that failure to comply would result in termination of the agreement.

However, with Min’s resignation, the feasibility of this request is effectively nullified. Observers speculate that NewJeans may consider aligning themselves with Min by pursuing litigation for contract termination, potentially allowing them to part ways with HYBE and embark on a new chapter. Fan support for this idea seems robust; many advocates believe that a fresh start under Min’s leadership would benefit the group.

Before her resignation, Min hinted at this possibility with a poignant message on social media declaring, “NewJeans never die.” Adding fuel to speculation regarding rebranding or potential legal disputes over their name, the group delivered a cryptic acceptance speech at the 1st Korea Grand Music Awards on November 16, stating, “Even if we are no longer NewJeans, NewJeans never die.” This leaves many wondering about their future direction amidst ongoing uncertainties.

The Implication of Prolonged Disputes

Nevertheless, the pursuit of contract termination could lead to a drawn-out legal affair that risks damaging the group’s image and popularity as they navigate periods of inactivity. Concerns regarding the impact of this legal strife on their fan base and market presence are increasingly prevalent.

An industry insider remarked on the unusual nature of artists openly challenging their management, underscoring the deep bond between NewJeans and Min Hee-jin. It seems Min is focused on the impending legal battles and the quest for autonomy while NewJeans appears poised to contend that their trust with HYBE has been irreparably damaged. Nonetheless, reputational risks linger, and the insider cautioned, “The legal process could lead to significant reputational damage, and it remains uncertain whether they can maintain their influence post-battle.”

In a parallel development, Min has also lodged a lawsuit against HYBE seeking payment under a put option agreement, potentially amounting to around 26 billion KRW based on HYBE’s reported operating profits for 2022 and 2023. The outcome of this claim remains uncertain amidst ongoing legal disputes.

Source: Daum

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