NewJeans Announces Unprecedented Contract Termination with Ador

On November 29, 2024, at midnight, the K-pop group NewJeans officially announced their decision to terminate their exclusive contract with Ador, raising questions about the unprecedented nature of this action.

Members Minji (민지), Hani (하니), Danielle (다니엘), Haerin (해린), and Hyein (혜인) held an emergency press conference on November 28 at the Galaxy Hall in the Space Share Samsung Station Center in Gangnam, Seoul. During the conference, they revealed that their contract would be nullified as of midnight on the 29th.

NewJeans stated, "As artists under Ador, the company has a fundamental obligation to protect us, but we feel that Ador lacks both the will and the ability to do so. We believe that remaining with them would only waste our time and continue to cause us mental distress. Most importantly, we see no professional benefit in staying, so we all agree there is no reason to remain."

The group expressed that they had faced disadvantages from both HYBE and Ador and had sought corrections but felt no commitment to improvement from the company. This breach of trust led them to conclude that they could not continue their exclusive contract, emphasizing that it would be terminated at midnight on the 29th.

Despite this, NewJeans asserted that they would not be liable for any penalties, as they believe that HYBE and Ador's violations led to the current situation. They are committed to securing their name and rights as NewJeans and intend to proceed with their scheduled activities as planned.

Notably, they indicated that there would be no need for a preliminary injunction or lawsuit regarding the contract termination. Minji explained, "Since Ador and HYBE violated the contract, we are terminating it. Once the contract is terminated, its effects cease, so our activities will not be hindered. We believe there is no need for a preliminary injunction because we can continue our activities without interruption."

Contracts are agreements that outline obligations between parties, and typically require formal procedures for termination. However, NewJeans claimed they could unilaterally terminate the contract. When questioned about this at the press conference, they reiterated, "We are terminating the contract because HYBE and Ador violated it. We have communicated extensively and sent a formal notice, but received no response, so we are proceeding with the termination as stated."

The members themselves acknowledged the unusual nature of their contract termination, stating, "We will need to discuss the legal aspects later, but there has never been a case like this before."

Legal expert Lee Hyun-gon analyzed the situation on social media, noting, "The most striking aspect of the press conference is the decision to terminate the contract effective immediately without pursuing litigation. This is unprecedented. If they had filed for a preliminary injunction, they would be unable to act until a conclusion is reached. However, by not pursuing litigation, they can leave, forcing Ador to take legal action against them, which NewJeans can then await. At this point, no one can prevent NewJeans from becoming independent."

While this unprecedented approach may seem like a breakthrough, it appears that a legal battle with Ador is inevitable. Ador responded promptly, stating, "As the party to the exclusive contract, Ador has not violated the contract, and simply claiming a breach of trust does not constitute grounds for termination. The exclusive contract between Ador and NewJeans remains valid. We hope that future schedules will continue as planned with Ador."