"NewJeans, Independent Activities Prohibited"…Court Rules in Favor of ADOR

Court Grants ADOR's Injunction to Prohibit NewJeans' Independent Activities
"Insufficient Evidence of Irreparable Breakdown in Trust Between ADOR and NewJeans"

The court ruled in favor of the agency ADOR in the injunction application filed against NewJeans. According to the court's decision that NewJeans should not engage in independent activities, it appears that NewJeans will no longer be able to carry out activities under the name 'NJZ'.

Yonhap News

The Seoul Central District Court Civil Division 50 (Presiding Judge Kim Sang-hoon) on the 21st accepted ADOR's injunction application against the five members of NewJeans, which sought to "preserve the status of the agency and prohibit the conclusion of advertising contracts," and issued an injunction.

The court stated, "The five members of NewJeans must not engage in entertainment activities on their own (including through legal representatives) or through third parties without prior approval or consent from ADOR," adding, "If the trust relationship between the contracting parties is broken, the entertainer may terminate the exclusive contract. However, the person claiming the termination of the contract due to such circumstances must bear the burden of proof."

It further explained, "Based on the claims and evidence submitted so far by the debtors (NewJeans members), it is difficult to conclude that the creditor (ADOR) violated any significant obligations under the exclusive contract, causing grounds for contract termination, or that the trust relationship between the parties has been irreparably broken."

Earlier, the five members of NewJeans announced in November last year that their contract with ADOR had been terminated due to breach of the exclusive contract, and subsequently changed their team name to NJZ and began independent activities.

In response, ADOR filed an injunction application in January to prevent the NewJeans members from independently signing advertising contracts. ADOR later expanded the scope of the injunction application to prohibit NewJeans from engaging in entertainment activities, including songwriting, composing, and singing.

At the hearing held on the 7th, NewJeans argued that the exclusive contract should be terminated based on the breakdown of trust. NewJeans stated, "In the case of an exclusive contract for singers, free will and the exercise of holistic and creative imagination are required," and argued, "If the trust relationship is broken due to unfair discrimination and attacks, it becomes impossible to continue activities as artists." All five members of NewJeans attended the hearing, stayed throughout the trial, and appealed for the dismissal of the injunction.

On the other hand, ADOR emphasized that there are no grounds for terminating the exclusive contract. ADOR stated, "For the termination of an exclusive contract to be recognized, a significant breach of obligation must be acknowledged," and added, "Although it is claimed that ADOR intentionally discriminated and excluded them, no company would foolishly harm a group in which it has invested a huge sum of 21 billion won."