NewJeans Continues Legal Battle Despite 3rd Anniversary…Third Hearing in Exclusive Contract Dispute with ADOR

The group NewJeans persisted in its legal struggle against their agency ADOR as they marked three years since their Debut. On the 24th, Civil Division 41 of the Seoul Central District Court held the third hearing in ADOR’s main lawsuit seeking to confirm the validity of the exclusive contract between the two parties. NewJeans’ side maintained a firm stance, arguing that the trust relationship had completely broken down. A representative for NewJeans stated, “The trust relationship has already collapsed beyond repair; we’ve crossed a river with no way back. While we need to discuss this with our clients, it won’t be easy.” In contrast, ADOR expressed the view that once the court issues a decision—whether in the main lawsuit or a preliminary injunction—reaching an agreement would become much simpler, emphasizing the need for a judicial ruling first.

The roots of this dispute date back to November last year, when NewJeans held an emergency press conference. There, they unilaterally declared the termination of their exclusive contract with ADOR, citing the breakdown of trust. Following this, they announced a new stage name, “NJZ,” and began independent activities. In response, ADOR filed lawsuits seeking to confirm the validity of the exclusive contract against the members and also requested a preliminary injunction prohibiting them from signing advertising contracts or maintaining their status as an agency-managed group. ADOR argues that when NewJeans unilaterally notified them of contract termination in April 2022, there were insufficient procedural and substantive grounds for such action. The court sided with ADOR, granting all requests related to preserving the agency’s status and prohibiting advertising contracts, while rejecting both the members’ appeals and protests.

More significantly, a mandatory enforcement order was issued on May 30th. Civil Division 52 of the Seoul Central District Court ruled that “until the first-instance judgment in the lawsuit to confirm the validity of the exclusive contract is delivered, NewJeans must not engage in any entertainment activities independently or through third parties without ADOR’s prior approval or consent.” This decision determined that NewJeans’ release of new songs and activities under their new group name constituted a violation of contractual obligations. The penalties for violations are severe. Starting from the date the order was delivered, NewJeans must pay ADOR 1 billion won per violation, with the amount rising to 5 billion won if all five members participate in the activity together. NewJeans is a group that made its Debut on July 22, 2022, and an animated video celebrating their 3rd anniversary was posted on ADOR’s official social media accounts.