![NewJeans Contract Termination Facts & Controversy Explained! [Expert’s Opinion]](https://www.kpoppost.com/wp-content/uploads/2024/12/newjeans-contract-termination-controversy-COVER.jpg)
When NewJeans decided to just end its contract with HYBE-ADOR, it set the entire global music industry in a frenzy. Netizens suddenly turned into overnight lawyers and legal consultants, weighing on all the pros and cons of the group’s decision, saying they cannot just do whatever they please. But can’t they really? Because facts say that NewJeans actually doesn’t need to go to court over its decision. Still, how did this miracle happen? Well, that’s what most people will wonder. So today we’re going to give you all the facts on the NewJeans contract termination controversy, explained by prominent Korean legal experts.
NewJeans Triggers Controversy with Sudden Contract Termination – A Child’s Tantrum?
On November 28, 2024, NewJeans shocked the entire Kpop community with its emergency press conference. At the event, the group announced to have ended the exclusive contract with their agency, ADOR, effective at midnight on November 29.
While it is nothing new that Kpop idols have differences with their agencies, this one was surely different. Why? Unlike what usually happens in the industry, NewJeans did not—in any possible way—take the usual legal steps to end its contract. They just simply announced that all the members decided not to continue working with ADOR.
Therefore, NewJeans contract termination resulted in a massive legal controversy. Many even par the group’s action as a child’s tantrum: 5 children publicly sulking against the agency. After all, with Minji and Hanni being eldest members at 20 years and maknae Hyein at 16, the public views the group as nothing but kids.
And yet, was this decision really dismissible? Was NewJeans just playing with company contracts and adding to the already nightmarish working conditions in Kpop?
Korean legal experts finally spoke up and explained all the legal facts behind NewJeans contract termination controversy. Represented by Attorneys Noh Jeong On and Cho Kwang Hee, as well as former Judge of Seoul Family Court, Attorney Lee Hyun Gon, here’s all the legality behind NewJeans decision.
NewJeans Contract Termination: A Highly Strategic Move
Previously, NewJeans declared that their contract termination decision was because of a breach of trust. In the earlier discussion, we all understood how “trust” is a crucial foundation in an artist-agency contract. So, without trust, the relationship cannot continue.
With everything going downhill since HYBE fired Min Heejin from her ADOR CEO position, NewJeans believed that ADOR had broken this “trust” relationship by doing nothing to fix the issues. Therefore, NewJeans can no longer continue the partnership with the agency due to this “broken trust,” and they have decided to proceed with immediate contract termination. As they believed ADOR and HYBE were at fault, NewJeans argued that neither legal process nor penalties were necessary.
According to expert Attorney Noh Jeong On, this has been a highly strategic move.
What NewJeans did was basically an “annulment” of their contract with ADOR. According to attorney Noh Jeong On, the legal process will take a lot of time. And NewJeans will have to go on hiatus until the process finishes.
Since NewJeans was confident that the contract would eventually end, taking it to court was simply unnecessary. The evidence pointing to the breach of the contract by HYBE, as revealed in leaked documents, suggested that the termination was warranted.
By choosing this move, NewJeans can continue promoting it without waiting for the court’s decision. The group basically passes the ball to the hands of advertisers and broadcasters, asking them to choose between NewJeans members and ADOR.
And seeing how NewJeans has been thriving even amid this gigantic dispute, we all know the answer.
Was This Legal? Experts Explained the Controversy
So, does this mean NewJeans really can get away with these kinds of contract terminations? According to legal experts, YES.
According to Attorney Noh Jeong On, all exclusive contracts have clauses demanding that agencies protect their artists. And when the agencies fail to do so, the artist can legally terminate the said contract.
“If there is an objective and significant sign of the breakdown of the trust between the parties, the contract can be terminated without determining who was more at fault.”
Attorney Noh Jeong On.
Not only that, but there is also a legal foundation for NewJeans decision, according to the experts.
The revised Standard Exclusive Contract for Pop Culture Artists in 2023 stated that if one side breaches the contract, the other can demand correction of the breach within 14 days, which NewJeans did. If no correction is made, they can terminate the contract and claim damages.
Did ADOR Breach the Contract? YES!
So, if NewJeans can prove that ADOR had indeed breached the contract, they may be able to move forward without any issues.
Now, did ADOR really breach the contract? Did the company break the trust relationship with NewJeans?
According to former Judge of Seoul Family Court, Attorney Lee Hyun Gon, everything was quite clear, which is why ADOR can’t just file a lawsuit against NewJeans.
“Some are questioning whether NewJeans can leave without filing a lawsuit unilaterally, but that claim is flawed.
HYBE unilaterally notified Min Heejin of the termination of their shareholders’ agreement. How can they do that themselves but prevent others from doing the same?
There is a difference, though—HYBE terminated the shareholders’ agreement without cause, while NewJeans had sufficient reason to terminate their contract. If there’s a distinction, that’s it.”
Former Judge Lee Hyun Gon.
After all, the previous leak of HYBE’s internal document supposedly showed the company’s plans to abandon NewJeans. If this is the case, it will be hard for ADOR to strike back without further damaging their own image.
Penalty Fee Controversy of NewJeans Contract Termination Explained
Still, let’s talk about the giant elephant in the room: the penalty fee.
Experts explained that the penalty fee controversy surrounding NewJeans contract termination is actually valid. Yes, in most cases, if the artist prematurely terminated the contract, they would have to pay a huge penalty fee, depending on the artist’s monthly revenues and the remaining contract period. And for NewJeans, the possibility was enormous indeed!
However, Attorney Noh Jeong On stated that in NewJeans’ case, nullifying the penalty fee was entirely possible.
NewJeans’ argument was very simple: they did nothing that can be considered breaching the contract, so they don’t need to pay a penalty.
Instead, HYBE-ADOR was the one who had done it, and therefore the company should pay the penalty to NewJeans.
And considering the content of HYBE’s leaked internal documents, HYBE and ADOR were clearly at fault.
“If both parties are at fault, there may be no penalty at all. If one party bears more responsibility, that party pays the penalty.
Given the current facts, such as the leaked HYBE documents, HYBE and ADOR seem more at fault than NewJeans.”
Attorney Noh Jeong On.
The Use of “NewJeans” Brand After Contract Termination: According to Experts
Among many concerns, fans are extremely worried whether NewJeans can use its name after contract termination controversy.
In the past, idols who left their agencies often had to give up their group name. But apparently, things are different now.
The revised contract (Article 8: Trademark Rights) allows artists to negotiate the use of the group name after termination. That is as long as the artist pay a fair price to the agency.
“In the past, idols often couldn’t use their group name after leaving their agency. However, the revised standard contract allows them to use it if they pay a fair amount to the agency.”
Attorney Noh Jeong On.
Meanwhile, NewJeans has made it clear that they plan to fight for the rights to their name. So even though they might face some challenges using the name right away, they’re determined to keep it.
NewJeans Action is Not a Child’s Tantrum & Contract Officially Terminated: Experts Explained the Controversy
Finally, multiple experts once again declared that NewJeans’ action was not a child’s tantrum.
“Some think that yesterday’s press conference was an impulsive move by inexperienced kids without legal advice. That’s completely untrue.”
Attorney Noh Jeong On.
Therefore, it is finally official.
As of November 29, experts believe that the contract between ADOR and NewJeans has officially been terminated from a legal point of view.
“The contract has already been terminated by the members because they took all the legal steps to do so.
Now, ADOR can file a lawsuit to see if the court agrees with NewJeans’ reasons for terminating the contract.
If the court sides with NewJeans, the contract will stay terminated. But if the court decides NewJeans was wrong in ending the contract, they might have to either return to ADOR or pay compensation.”
Former Judge Lee Hyun Gon.
“Whatever happens, it’s not NewJeans who has to file the lawsuit — it’s ADOR.
While contracts can be terminated as NewJeans did, the real issue is whether the court agrees with their reasons. The tricky part is that this isn’t a clear-cut issue like payment or numbers. It’s about ‘trust,’ which can be interpreted differently.
And the situation is more complicated because it’s not just about ADOR and NewJeans, but also involves Min Heejin, HYBE, and others.”
Attorney Cho Kwang Hee.
ADOR’s Hands Are Tied
Finally, with NewJeans contract termination controversy explained in legal views, ADOR’s hands are tied.
As NewJeans’ agency, the company has repeatedly declared its intention to “support NewJeans to the best of their abilities.” So, while it’s entirely legal for the company to file a lawsuit, it will never be ethically correct.
That is why the balls are now in the hands of the advertisers and promoters. Do they want to continue working with ADOR or NewJeans members?
While the situation is still unfolding, it seems like NewJeans has a solid case for terminating their contract, and the legal experts we’ve heard from suggest that the termination will likely stand.
Fans are praising NewJeans for taking the stand with confidence and independence to handle their own situation. After all, this case will set a new precedent for how artist-agency disputes are handled in the future.
No matter how things turn out, NewJeans has clearly shown that they’re ready to take control of their careers and their future.
So, what do you say? Do you think NewJeans made a good decision? Let us know in the comments below!
Stay with us on Kpoppost’s Instagram, Threads, Facebook, X, Telegram channel, WhatsApp Channel and Discord server for discussions. And follow Kpoppost’s Google News for more Korean entertainment news and updates. You can also join our exclusive membership. You might be able to join our upcoming exclusive community events and win exciting prizes!
