NewJeans Loses Complete Battle Over Exclusive Contract Dispute with ADOR; Court Rules Contract Valid

Group NewJeans suffered a total defeat in its legal battle over the validity of its exclusive contract with ADOR, a subsidiary of HYBE. On the 30th, the Civil Agreement Division 41 of the Seoul Central District Court (headed by Judge Jeong Hwe-il) dismissed all of NewJeans’ claims in the lawsuit filed by ADOR to confirm the contract’s validity, siding with ADOR and upholding the contract’s legality. Last September, NewJeans protested the dismissal of former ADOR CEO Minhee, and in November, it unilaterally declared termination of its exclusive contract with ADOR, prompting ADOR to take legal action in January. Through this ruling, the court confirmed that NewJeans’ contract remains valid until July 31, 2029. NewJeans attempted to prove the legitimacy of contract termination using a total of eight main arguments, but none were accepted. First, the claim that the dismissal of former CEO Minhee created a production gap and thus violated the contract was rejected. The court stated, “None part of the exclusive contract stipulates that former CEO Minhee must necessarily carry out management duties for NewJeans,” adding that “ADOR actually offered production work to former CEO Minhee, but she resigned.” Other arguments raised by NewJeans were also dismissed one after another. The claim that ADOR violated the contract due to a dispute with partner company Dolgo-rae Yu-goe-dan was denied, as the court ruled that “Dolgo-rae Yu-goe-dan uploaded the music video to YouTube without ADOR’s prior consent.” The claim that a phrase in a report prepared for HYBE executives—“Just leave them and make new plans”—was intended to exclude NewJeans was also rejected, with the court determining it was “listed under items related to other idols and not concerning NewJeans.” The claim that ADOR failed to address ILLIT copying NewJeans’ concept was dismissed as well, with the court stating, “There is insufficient evidence to confirm concept copying.” The court explained that “this controversy arose during former CEO Minhee’s tenure, and she took action such as sending emails.” The claim that member Hanni heard a manager from ILLIT say “ignore them” while ADOR failed to provide protection was also rejected; instead, the court found that ADOR took “sufficient measures” such as reviewing CCTV footage. Regarding the leakage of photos and videos from their Trainee days, the court assessed that ADOR had taken “necessary actions,” including requesting the removal of video uploads, deleting derivative videos, asking for blurred processing of photos, investigating the leakage source, and sending official notices. The claim about a HYBE PR representative making “downplaying remarks about performance” was dismissed as well, with the court noting it was “from HYBE’s corporate PR representative” and “difficult to conclude it was a remark intended to demean NewJeans.” The claim that low performance ratings were caused by HYBE “forcing album releases” was also rejected, with the court ruling that “the evidence submitted is insufficient to accept this claim.” Immediately after the judgment, NewJeans declared it would “not return” and expressed intent to appeal. Meanwhile, ADOR issued a statement saying it would “wait for NewJeans.” As a result of this ruling, NewJeans is forced to continue activities under its exclusive contract with ADOR until July 2029.