On the 28th, NewJeans held an emergency press conference where they announced that they would terminate their exclusive contract with ADOR but clarified that they would not be taking any separate legal action. This decision has drawn attention, and many are curious about the reasons behind it.

During the conference, the members of NewJeans claimed, “ADOR has an obligation to protect its artists. It is a fundamental duty as a company, but they neither have the will nor the ability to protect NewJeans.” They also stated, “HYBE and ADOR are essentially one entity. Because HYBE violated the contract, we are terminating the exclusive contract. There is no need for a provisional injunction, and we are not obligated to pay any penalties.”

According to a report by Hankyoreh on the 29th, the basis for NewJeans’ decision to terminate the contract appears to align with previous court rulings. In May, the court issued an injunction that stopped HYBE from firing ADOR’s then-CEO, Min Hee-jin. The court’s decision stated that “the exclusive contract between ADOR and NewJeans includes a provision requiring ADOR to take necessary actions if NewJeans’ entertainment activities are infringed upon or obstructed,” and “if ADOR violates this duty, the members of NewJeans may terminate the exclusive contract.”

Until now, NewJeans and former CEO Min have claimed that their activities were hindered by HYBE. They likely decided to terminate the contract because ADOR failed to take appropriate action.

So why did NewJeans choose not to take legal action such as filing for a contract invalidation or an injunction? In previous cases of disputes between artists and agencies, it has been common for the artist to file for a contract invalidation injunction and for the company to counter with an injunction to prevent the artist from continuing their activities. This is why many reporters asked, “Why aren’t you filing for an injunction or other legal measures?”

Experts believe that there is a strategic legal reasoning behind this decision. Lee Hyun-gon, a lawyer from Saeol Law Firm and former judge, posted on Facebook, “The most notable part of the press conference is the statement that the contract will be terminated as of midnight today, but no lawsuit will be filed. This is an unprecedented approach. If an injunction is filed, the case cannot proceed until a conclusion is reached. However, by not filing a lawsuit, NewJeans can simply wait for ADOR to file a lawsuit against them, which puts them in a more favorable position.” He explained that if they filed a lawsuit first, they would face restrictions on their activities until the case is resolved and could risk losing, which they did not need to endure. Another lawyer working in a corporate legal department added, “It seems like they are adopting a strategy where they will only respond if HYBE files a lawsuit first.”

HYBE is also reportedly considering its legal options. One possible response could be filing for an injunction to prevent NewJeans from continuing their activities. However, this approach could backfire by further damaging the trust between the two parties. Jeong Seong-ho, a lawyer from Neulbeot Law Firm, commented, “NewJeans wouldn’t have made such a public announcement without legal consultation. If ADOR files an injunction, NewJeans is likely to emphasize that they have been harmed by the company.” Attorney Noh Jong-eon, CEO of Jeongi Law Firm, added, “To file for an injunction to prevent activities, there must be objective signs of ‘tampering’ (pre-contact before the contract ends), but that has not been clearly established yet. At this point, it seems unlikely that an injunction would be granted.”

Ultimately, legal professionals believe that HYBE will likely respond by filing a lawsuit for damages and claiming penalties. Attorney Noh stated, “The penalty amount will vary depending on the party at fault. Even if HYBE is found to have no fault, the court may reduce the penalty if the amount is too large.” Another lawyer specializing in entertainment law noted, “Even if they claim penalties, they may not receive the full amount. NewJeans could even file a counterclaim, arguing that they have been harmed and seek penalties themselves.” The lawyer further mentioned that in cases like this, where opinions are sharply divided, a final ruling could take at least 3 years or even up to 5 years.

Meanwhile, NewJeans and ADOR released a response to the notice NewJeans sent regarding their contract. In the response, ADOR stated, “The exclusive contract is valid until July 31, 2029,” and “We have plans for next year’s fan meeting, the release of a full album, and a world tour, and we are currently recruiting a new producer.” They also addressed the phrase from HYBE’s music industry report that said, “Just ditch NewJeans and start fresh,” explaining that it was not meant to imply abandoning the artist. Regarding the members’ demands for the return of former CEO Min, ADOR responded that “the decision to maintain a specific CEO is within the management discretion of the ADOR board of directors.

Source: theqoo

Views: 30,011, comments: 252

1. NewJeans is smart.

2. We decided to call this self-inflicted harm 🤭

3. Korean law isn’t that lenient with celebrities. NewJeans is different, but this time isn’t the case. These kinds of things are just wishful thinking. The lawyers on NewJeans’ side are probably just saying good things because they’re getting paid well.

4. If HYBE files a lawsuit, they’ll probably just get in a worse position as it always happens. ㅋㅋㅋㅋ

5. The big problem is that they can’t do activities until the lawsuit is over. In this situation, HYBE has to file for an injunction or lawsuit to prevent NewJeans from performing, which puts them in a tricky position. ㅋㅋ
Whether it’s about penalties or contract termination, HYBE can’t be certain they’ll win. Even if they win, it will probably take 2-3 years, and they can’t just sit back and do nothing.

6. NewJeans fighting

7. Isn’t everything already over when Bang Si-hyuk ignored his responsibilities?

8. It’s funny seeing them getting what they deserve for their karma ㅋㅋㅋㅋㅋ

9. A bigger mess is going to happen ㅋㅋㅋ

10. NewJeans has already won by having the contract terminated. Even if they have to pay tens of millions in penalties later, they’ve won. HYBE’s goal was to bury NewJeans.