NewJeans Declares Contract Termination in Urgent Press Conference
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Group NewJeans held a press conference to announce the termination of their exclusive contract with their agency, ADOR. They claimed that ADOR was responsible for the contract termination and therefore they should not have to pay any penalties. On the other hand, ADOR rebutted that NewJeans' exclusive contract is valid until 2029, and the conflict between the two sides is expected to lead to a legal dispute.
The group NewJeans is attending a press conference regarding the termination of their exclusive contract held on the afternoon of the 28th at SpaceShare Samsung Station Center in Gangnam-gu, Seoul. From left to right: Haerin, Danielle, Minji, Hani, Hyelin. November 28, 2024. Photo by Yonhap News.
NewJeans held an emergency press conference on the afternoon of the 28th of last month and announced that they would terminate their exclusive contract with ADOR as of midnight on the 29th. They stated that they would not take legal actions such as filing for a provisional injunction to suspend the contract's effect, and argued that since ADOR and HYBE were responsible for the contract termination, they should not have to pay any penalties.
Earlier, NewJeans sent a certified letter to ADOR on the 13th of last month demanding eight corrective measures, including: an explanation regarding the HYBE document that said "Just discard New and reorganize," actions against a manager from another label (Belief Lab) who said member Hanni was "ignored," measures regarding the HYBE PR director's disparagement of NewJeans' achievements, necessary steps to preserve NewJeans' identity and guarantee their activities, and the reinstatement of former director Min Hee-jin as ADOR's CEO.
NewJeans warned that if these issues were not corrected within 14 days of receiving the certified letter, they would terminate the exclusive contract. However, ADOR's reply did not include any specific improvement plans.
At the press conference, member Minji said, "We are terminating the contract because ADOR and HYBE violated the contract. Once the contract is terminated, the exclusive effect ceases, so there will be no obstacles to our activities. Since we can continue our activities steadily, we believe there is no need to file lawsuits such as provisional injunctions."
Member Haerin also emphasized, "We did not violate the exclusive contract, and we have done our best in our activities so far, so there is absolutely no reason for us to pay penalties. Rather, this situation arose because ADOR and HYBE violated the contract, so naturally the responsibility lies with ADOR and HYBE."
In response, ADOR insisted that NewJeans' exclusive contract is valid until 2029. On the 29th, ADOR issued an official statement expressing regret that NewJeans planned and held a contract termination press conference without sufficient review before receiving a reply to the certified letter. They argued, "ADOR did not violate the contract, and claiming that trust was unilaterally broken does not constitute grounds for termination." At the same time, they expressed a desire to "open their hearts and have sincere conversations with NewJeans."
In the legal community, NewJeans' demand for contract termination without legal procedures has been described as an "unprecedented strategy."
Attorney Lee Hyun-gon of Saeol Law Office, a former judge, analyzed on his SNS on the day of the press conference on the 28th of last month, "If a provisional injunction lawsuit is filed, activities cannot proceed until a conclusion is reached. If it proceeds like this (without a lawsuit), ADOR will have to sue NewJeans, and NewJeans can just wait for that. Currently, no one can stop NewJeans from becoming independent."
Attorney Jo Myeon-sik, head of Gate Law Firm, explained on his SNS on the 30th of last month, "Whether the contract termination takes effect just by notifying the termination depends on whether there is a reason for the other party's breach of contract. Contract termination does not occur immediately; a correction period is set to request correction of the breach, and if correction is not made within that period, the right to terminate by law arises."
Attorney Jo continued, "NewJeans notified contract termination based on the right to terminate by law. (Omitted) From NewJeans' perspective, the biggest concern is that ADOR might claim that NewJeans breached the contract by unilaterally notifying termination and then file a termination notice and claim damages." He added, "(ADOR) will likely claim astronomical damages, but there is no need to worry at all. It is doubtful whether judges will dare to rule on such a shocking amount of damages."
At the Seoul World Cup Stadium during halftime of the second match of the 2024 Coupang Play Series between Tottenham and Bayern Munich, the group NewJeans is performing. Photo by Yonhap News.
He also added, "What NewJeans expects is this: ADOR will be stuck, unable to do anything, and will be forced to file a lawsuit reluctantly. Such cases are not won or lost based on legal logic."
Currently, following the press conference, NewJeans is continuing their activities without an agency, according to their claims. Unlike the past, where contract issues with agencies were resolved through provisional injunction lawsuits to suspend contract effects, NewJeans has opened a new chapter in contract termination.
ADOR is expected to consider various legal measures against NewJeans, including filing for an injunction to prohibit activities and a lawsuit for damages. NewJeans stated at the press conference that they will continue to use the group name even after leaving ADOR, raising the possibility of a trademark lawsuit over the group name after contract termination.
Meanwhile, if ADOR claims damages, the penalty NewJeans would have to bear is expected to range from a minimum of 300 billion KRW to a maximum of 600 billion KRW.
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