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NewJeans, an internationally successful K-pop girl group whose members’ careers have been stalled amid a contract dispute with their label, lost a court battle to terminate the contract with ADOR, a subsidiary of South Korean entertainment giant HYBE, though the group says the ruling will be appealed. NewJeans and their label have been in a standoff since early 2024. (Photo by Han Myung-Gu/WireImage) A South Korean court said Thursday NewJeans’ contract with record label ADOR, which is scheduled to end in 2029, remains valid, a year after the group attempted to exit the contract after accusing parent company HYBE of mistreatment. NewJeans tried to break free from the contract last year in a highly publicized dispute after HYBE fired then-ADOR CEO and NewJeans executive producer Min Hee-jin, with NewJeans also accusing the company of intentionally ostracizing it from other artists and failing to act when the group’s private medical records were leaked. A law firm representing NewJeans said in a statement it plans to appeal the ruling. ADOR said the ruling upholds its “position of management agency under the exclusive contract, and that the artist must engage in entertainment activities along with us,” adding it hopes NewJeans will “calmly reflect on this matter,” in a statement shared with Forbes. The label added it has “completed preparations for the artist's activities, including the release of a studio album, and are waiting,” though NewJeans reportedly said upon the ruling it is “impossible to return to ADOR” as trust between the group and label has been “completely broken.” HYBE shares jumped Thursday morning, rising as much as 7.12% with its market capitalization adding $644 million, CNBC reported. Key Background The standoff between NewJeans and its record label began in early 2024 after parent company HYBE—the South Korean entertainment giant behind groups like BTS—accused Min of trying to break free from HYBE to manage NewJeans independently, though Min denied these allegations. She was fired as ADOR’s CEO in August 2024, and NewJeans demanded she be reinstated in a livestream in September, where they detailed accusations of alleged mistreatment by HYBE. HYBE’s dismissal of Min “made it clear to us that they don’t respect us at all,” NewJeans member Haerin said, with member Danielle adding Min is “irreplaceable” and “made NewJeans who we are.” In one allegation, member Hanni said she greeted another group signed to HYBE while at the company’s office, alleging that group’s manager told its members to “ignore her.” Hanni repeated this allegation in testimony to the South Korean National Assembly’s Labour Committee the following month, alleging the “company hated us,” also accusing HYBE of instructing journalists to downplay the group’s achievements in news coverage. In November, NewJeans said it planned to leave its label, but ADOR petitioned a court in December to uphold the group’s contract. NewJeans announced a hiatus in March, citing the “mental and emotional toll” of the court battle, and in May, a South Korean court ruled NewJeans must pay a hefty fine equivalent to $725,000 for performances and music releases not authorized by the label. Crucial Quote “My heart is with you NewJeans,” singer Kesha posted on X after the ruling. Kesha previously sued producer Dr. Luke, alleging sexual harassment, and tried to break free from their contract in a legal dispute that was settled in 2023. How Is The Newjeans Case Unprecedented? The highly publicized dispute between NewJeans and its label is considered unprecedented for the K-pop industry, in which labels are known for having tight control over artists and their public images. Michael Hurt, a lecturer at Seoul’s Korea National University of Arts, said in 2022 labels are “extremely strict in how it regulates the public appearance and the image of their groups,” and that K-pop stars are discouraged from dating or having “control of their own lives.” In 2024, K-pop star Karina garnered international attention for apologizing to fans after her relationship with an actor was made public, promising to show a “more mature and hardworking side” of herself. Multiple deaths by suicide in recent years—including Moonbin, singer in the group Astro, and Sulli, a singer in the group f(x)—have prompted scrutiny of working environments for K-pop stars. Who Is Newjeans? NewJeans was formed by ADOR in 2022 following months of auditions, and the five-member group released its first EP, “New Jeans,” that year. The group initially found success in South Korea, but broke out internationally the following year with its EP “Get Up,” which debuted at No. 1 on the Billboard 200 chart in the United States. NewJeans released a string of hit singles, including “Super Shy” and “ETA,” both of which charted on the Billboard Hot 100, and the group has 14 million monthly listeners on Spotify despite not releasing any new music in more than a year. Further Reading NewJeans Hold Guerrilla Livestream Alleging Mistreatment, Demand HYBE Reinstate ADOR CEO Min Hee-jin (Billboard) NewJeans’ Ultimatum Casts K-Pop’s Displays of Labor in a New Light (New York Times) Got a tip? Share confidential information with Forbes. Editorial StandardsReprints & Permissions
