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Could NewJeans leave their current management agency, ADOR, following former CEO Min Hee-jin? Min on Nov. 20 announced her decision to completely part ways with ADOR’s parent company, HYBE, after seven months of disputes. Earlier, on Nov. 14, ADOR received a notice from NewJeans members stating they would terminate their exclusive contracts unless Min’s reinstatement and other demands were met within 14 days. Industry insiders predict the conflict between NewJeans and ADOR may ultimately escalate to legal proceedings, as the members’ ultimatum deadline approaches in two days.

Entertainment lawyers believe contract termination is possible. Song Hye-mi, a lawyer at Opes Law Office, said, “Termination cases hinge on whether trust between the parties has broken down, and courts often side with artists. Public perception that ADOR cannot fully support NewJeans, along with claims that HYBE’s audit of Min since April has disrupted the group’s activities, could support the argument of lost trust.” Yang Tae-jung, a lawyer at Gwangya Law Firm, added, “If the members refuse to work with ADOR, preventing the termination would be difficult.”

However, completely avoiding penalties seems unlikely. Song noted, “Like in divorce cases, ending the relationship and resolving damages are separate issues. Even if artists win termination lawsuits, penalties are often imposed. While the amount may be reduced depending on fault allocation, full exemption is rare.” Lawyer Jo Kwang-hee from One Law Partners added, “Full penalty exemptions typically involve severe misconduct like abuse or financial irregularities by the agency, which doesn’t seem to apply here.”

Lawyer Chang Hee-jin from Garojae Law Office said, “The agency has consistently supported album releases and promotions, and revenue payments have been unusually high and prompt for the industry. Finding fault with the agency for neglect is challenging.” Lawyer Noh Jong-eon from Jonjae Law Group, who successfully handled a similar case for Omega X, commented, “Creative rights violations, as claimed by NewJeans, are rarely recognized as grounds for penalty exemptions.”

If ADOR is found faultless, industry estimates suggest NewJeans could face penalties of up to 600 billion won (about $4.3 million). Noh said, “This case is unusual, involving a globally popular idol group still under contract. The financial stakes could be unprecedented.”

If ADOR’s fault is acknowledged, penalties could be reduced. Lawyers highlighted the members’ public support for Min Hee-jin as a key factor. Noh said, “If Min’s production role was central to their contracts or the group’s activities, it could strengthen NewJeans’ case.” Song cited past rulings where groups left agencies after key figures departed and won, saying, “Changes in leadership can significantly impact trust. The dispute may also center on who initially recruited and developed the members.”

Even if NewJeans wins, they may lose the rights to their name and previously released songs, which are owned by ADOR. Chang explained, “Even if ADOR allows use, further settlements and compensation would be required. Even with a suspension of contract enforcement, the revenue-sharing structure tied to the ‘NewJeans’ name would remain unresolved.”

[Yoon Soo-jung]

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