Seoul court rules NewJeans must honor ADOR contract

The Seoul Central District Court ruled on October 30 that K-pop group NewJeans must honor their exclusive contracts with label ADOR, rejecting the group’s attempt to terminate the agreement and affirming the contracts remain valid until 2029chosun.
Judge Jeong Hoe-il found that ADOR’s dismissal of former CEO Min Hee-jin did not constitute a breach of contract, stating the court did not see a gap in the group’s activities or ability to work, and that Min’s role was not a core element of the exclusive contractchosun.
The court sided with ADOR on all major points, concluding that Min Hee-jin had planned to separate ADOR and NewJeans from parent company HYBE through a public opinion campaign, making HYBE’s audit justified rather than unjustchosun.
NewJeans faces financial penalties of 1 billion won ($727,000) per member for any unauthorized activities, and the court ordered the group to pay all legal costs, though their legal team announced immediate plans to appeal the decisionchosun.
The legal battle has severely impacted ADOR’s revenue, which plummeted 72% from 61.4 billion won in the first half of 2023 to 17.2 billion won in 2024, while NewJeans remains on hiatus amid the contractual disputesportschosun.

Seoul Court Rules NewJeans Contract with ADOR Valid

The Seoul Central District Court delivered a decisive blow to K-pop sensation NewJeans on October 30, ruling that their exclusive contracts with ADOR remain valid and rejecting the group’s attempt to terminate their agreement with the label. Judge Jeong Hoe-il stated that “it is difficult to regard ADOR as having violated the exclusive contract merely by dismissing former CEO Min Hee-jin,” upholding the legal framework that binds the quintet to their agency until 2029.mk

The ruling represents a comprehensive victory for ADOR, the HYBE subsidiary that manages NewJeans, in what has become one of K-pop’s most closely watched legal battles. NewJeans members were absent from the courtroom as the verdict was delivered, with only legal representatives from both sides present.allkpop

Appeal Announced as Financial Penalties Loom

NewJeans’ legal team immediately announced plans to appeal the decision. The group faces significant financial consequences under the ruling, with each member required to pay 1 billion won ($727,000) for any unauthorized activities performed without ADOR’s consent. The court also ordered NewJeans to cover all legal costs associated with the lawsuit.chosun

The dispute began in November 2024 when NewJeans unilaterally announced the termination of their exclusive contract, citing a “breakdown of trust” following Min Hee-jin’s removal as ADOR CEO. The group attempted to continue activities under the name “NJZ,” but the court granted ADOR’s injunction request in March, effectively halting their independent operations.channelnewsasia

Revenue Plummets Amid Legal Battle

The protracted legal dispute has severely impacted both parties financially. ADOR’s revenue plummeted 72% from 61.4 billion won in the first half of 2023 to just 17.2 billion won in the same period in 2024. The company, which generated 110.3 billion won in revenue in 2023 primarily through NewJeans’ activities, has struggled to secure new advertising or performance contracts during the group’s court-mandated hiatus.chosun

Meanwhile, Min Hee-jin, the dismissed former CEO widely credited as NewJeans’ creative architect, recently established a new entertainment agency called OOAK. Industry observers speculate that if NewJeans had won their case, they might have joined Min’s new venture, though the court’s ruling makes such a scenario legally and financially untenable.joins