On the 30th, a court ruled that the girl group NewJeans must maintain its exclusive contract with its agency ADOR. The court said, "The fact that ADOR dismissed former CEO Min Hee-jin alone does not constitute grounds to terminate the exclusive contract with NewJeans." In other words, the absence of Min does not create a gap in NewJeans' album planning and entertainment activities.
The court also explained to the effect that the spark of conflict between former CEO Min and parent company HYBE was ignited by Min's side. The court said Min tried to create negative public opinion about HYBE in order to take ADOR and NewJeans out of HYBE. It viewed that, as a result, HYBE conducted an audit of Min last year and proceeded to dismiss her.
The Civil Agreement Division 41 of the Seoul Central District Court (Presiding Judge Jeong Hoe-il) ruled in favor of ADOR at 9:50 a.m. on this day in the ruling date for ADOR's lawsuit seeking confirmation of the validity of the exclusive contract against NewJeans. It came about 11 months after NewJeans held a press conference on Nov. 28 last year and said, "We will terminate the exclusive contract with ADOR." This is the court's first formal decision since the conflict erupted last year among HYBE, former CEO Min, and NewJeans. NewJeans did not appear in court that day. In civil trials, parties are not obligated to appear for the ruling date.
The court did not accept NewJeans' claim that ADOR's dismissal of former CEO Min constituted a serious breach of obligations under the exclusive contract. The panel said, "Based solely on the circumstances of dismissing Min Hee-jin as CEO, it is hard to see that there was a gap in (work) regarding NewJeans, or that there was no plan or ability to perform the work." It also said, "Min Hee-jin's role is not a core element of the exclusive contract."
The court also dismissed NewJeans' claim that "ADOR unjustly dismissed former CEO Min." The panel said, "With the intention of separating ADOR, including NewJeans, from HYBE, Min Hee-jin prepared a public-opinion campaign, reports to related agencies, and lawsuits, while not stepping to the fore personally, and planned to create public opinion that HYBE unfairly treated NewJeans, and even looked for investors."
It continued, "It appears Min Hee-jin tried to become independent from HYBE, or to take NewJeans and make ADOR independent from HYBE," adding, "HYBE and ADOR's audit of Min Hee-jin appears to have been prompted by this plan, and it cannot be considered unjust."
The court also did not accept NewJeans' claim that ADOR neglected to protect NewJeans. Former CEO Min and NewJeans' side argued, "HYBE had ILLIT, a girl group under another in-house label Belift Lab Inc., debut with a concept similar to NewJeans, damaging NewJeans' uniqueness." In response, the court said, "ILLIT and NewJeans are similar but not enough to be considered a copy," and "It is difficult to see the female idol concept as falling under intellectual property protection."
At the end of the ruling, the panel said, "When management contracts are concluded before debut, as with NewJeans, it is common that a large investment is made in an uncertain environment and can be recouped only if it succeeds." It added, "We did not see that citing the rejection of excessive demands could be taken to mean that 'exclusive activities concerning free will were forced' or that 'personality rights were violated.'"
After the ruling, NewJeans' legal representative Shin & Kim LLC said in a statement sent to reporters, "We will appeal immediately." NewJeans' side said, "The members respect the court's decision, but in the current situation where the relationship of trust with ADOR has completely collapsed, it is impossible to return to ADOR and continue normal entertainment activities."
◇ HYBE says "Min Hee-jin tried to seize management control," conflict escalates as audit begins
Meanwhile, the dispute between NewJeans and its agency ADOR stemmed from the conflict that erupted last year between former CEO Min, the planner of NewJeans, and HYBE, ADOR's parent company. On Apr. 22 last year, HYBE said Min tried to seize management control and began an audit of Min.
Three days later, former CEO Min held an official press conference and countered, "The audit began after I protested that HYBE was mistreating NewJeans." At this press conference, Min drew attention for using the expressions "gaejeossi, meaning an obnoxious middle-aged man" and "thug" to refer to HYBE Chair Bang Si-hyuk and other executives. On Aug. 27 last year, HYBE held a board meeting and appointed ADOR inside director Kim Joo-young as the new CEO. Former CEO Min resigned as an inside director on Nov. 20 that year and left ADOR completely.
On Sept. 11 last year, NewJeans turned on YouTube Live and demanded that former CEO Min be reinstated. Two months later, they sent a content-certified letter to ADOR. On Nov. 28, 2024, the deadline for responding to the content-certified letter, NewJeans held an emergency press conference and announced, "The exclusive contract with ADOR is terminated." In response, in December last year, ADOR filed a lawsuit seeking confirmation of the validity of the exclusive contract against NewJeans.