A South Korean court has ordered K-pop girl group NewJeans to halt their independent activities and return to working with label ADOR.
In an order on Friday (March 21), the Seoul Central District Court granted HYBE-owned ADOR’s request for an injunction stopping NewJeans – who have rebranded themselves NJZ – from carrying out commercial activities outside of their contract with ADOR.
NewJeans unilaterally declared last November that their contract with ADOR was null and void, alleging mistreatment and bullying at the hands of ADOR staff amid an ongoing conflict between the label and its former CEO and NewJeans manager Min Hee-jin.
ADOR rejected NewJeans’ declaration and insisted that its contract with NewJeans members is still “in full effect.”
In December, the label went to court seeking to confirm the validity of its exclusive contracts with NewJeans members, and in January, ADOR asked the court for a preliminary injunction to prevent NewJeans from working outside ADOR.
The court granted that request on Friday, saying that there is “insufficient evidence to support the claims made by the NewJeans members,” per Korea JoongAng Daily.
In a statement emailed to MBW, ADOR said: “We express our sincere gratitude for the court’s judicious decision to grant the preliminary injunction. With our status as NewJeans’ exclusive agency now legally affirmed, we are fully committed to supporting the artists going forward.
“We will be fully present at ComplexCon this weekend to guarantee the performance is presented under the NewJeans name. We eagerly anticipate meeting with the artists for a heartfelt conversation at the earliest opportunity.
“We sincerely request your ongoing support and encouragement for NewJeans as they continue to grow together with ADOR.”
“With our status as NewJeans’ exclusive agency now legally affirmed, we are fully committed to supporting the artists going forward.”
ADOR
In a post on Instagram, NewJeans/NJZ said they plan to appeal the court’s decision.
“We at NJZ respect the court’s decision. However, we believe that the decision did not sufficiently take into account the fact that the trust of the members in ADOR was completely destroyed,” the group stated.
NewJeans suggested they lost the fight over the injunction because they weren’t given enough time to lay out their case.
“There are also many people who are unable to cooperate due to the pressure and retaliation of being involved in the lawsuit,” the group added.
NewJeans’ severing of its relationship with ADOR sent shockwaves through the K-pop industry.
“We believe that the decision did not sufficiently take into account the fact that the trust of the members in ADOR was completely destroyed.”
NewJeans/NJZ
In February, five trade groups involved with K-pop companies issued a statement warning that if NewJeans’ unilateral move to leave ADOR became precedent, it could severely damage K-pop.
They linked NewJeans’ activities to “tampering” – the practice of labels and managers attempting to lure artists away from their legally binding contracts.
“If tampering attempts succeed, Korea’s entertainment management industry will collapse,” the groups said.
“This issue extends beyond domestic disputes — foreign capital could step in and take over the K-pop industry entirely.”
The ruling represents a significant legal victory for HYBE and ADOR in their ongoing dispute with the K-pop group.
The legal battle has escalated dramatically over recent months, with ADOR taking legal action to block NewJeans from seeking independent deals in addition to requesting a complete ban on the group’s entertainment activities following their rebranding announcement.
During a court hearing on March 7, ADOR’s lawyers revealed that HYBE had invested KRW 21 billion ($14.4 million) into developing NewJeans, and claimed each member had received settlement payments of approximately KRW 5 billion ($3.4 million) amid the legal dispute.
“HYBE invested KRW 21 billion won into ADOR, and NewJeans has been generating significant revenue since 2023. It defies logic to suggest that a profit-driven company would sabotage one of its biggest earners,” ADOR’s legal team argued at the time.
The group members had previously expressed their position in December 2024, stating that continuing their relationship with ADOR would expose them to “further damage.”
NewJeans held a press conference in November 2024 to announce they had left ADOR, but the label maintained their contracts remain valid until July 31, 2029.
NewJeans’ legal team has positioned the dispute as centered on an alleged breach of trust, accusing HYBE of orchestrating a media campaign against them and planning to replace them with another act.
The conflict has raised significant concerns within South Korea’s music industry. Last month, five trade groups representing the K-pop sector issued a warning about the ongoing dispute, saying the case could destabilize the industry if it sets a precedent.
“If tampering attempts succeed, Korea’s entertainment management industry will collapse,” the groups said in a statement. “This issue extends beyond domestic disputes — foreign capital could step in and take over the K-pop industry entirely.”
The roots of the dispute trace back to April 2024 when HYBE alleged that Min Hee-jin, then CEO of ADOR and the person credited with creating NewJeans, had attempted unlawfully to sever the label from HYBE, which owns a majority stake in ADOR. Min was replaced as CEO last summer.
The NewJeans controversy comes at a challenging time for HYBE. The K-pop giant recently reported that it swung to a net loss of KRW 3.38 billion ($2.48 million) in 2024, versus a net profit of KRW 183.45 billion in 2023, amid rising costs and weakness in its recorded music segment.
HYBE has attributed this decline in profitability partly to BTS’s temporary break, as the group once accounted for less than 20% of the company’s revenues in 2024, down from 95% at their peak.
A separate trial addressing the validity of NewJeans’ contract termination is scheduled for April 3, which will determine the long-term future of the relationship between the K-pop group and ADOR.
In their Instagram post commenting on the ongoing legal case over the validity of their contract with ADOR, the group said: “Unlike the injunction procedure, the main lawsuit can more freely utilize the civil procedure law system to secure necessary evidence, so we expect that this will greatly strengthen the evidence supporting the members’ claims.”Music Business Worldwide
