NewJeans Returns to ADOR After One Year; First Instance Ruling Confirms Validity of Exclusive Contract

NewJeans has decided to return to ADOR following a loss in the first-instance court ruling regarding their dispute over the exclusive contract with the HYBE-affiliated label. This decision comes one year after they announced the termination of the contract. On the 30th, the Seoul Central District Court dismissed all 11 reasons for contract termination cited by NewJeans, determining that ADOR had fulfilled most of its critical obligations under the exclusive contract. The court explicitly stated that the claim by NewJeans’ members regarding a “breakdown in trust” was “not proven to be severe enough to be recognized as a reason for contract termination.” This ruling reaffirmed that the exclusive contract between NewJeans and ADOR remains valid until July 31, 2029. The dispute originated in November of last year when NewJeans unilaterally notified ADOR of the end of their exclusive contract. NewJeans argued that the dismissal of former CEO Minhee Jungeun had created a gap in group management and production, and that the contract was based on trust in her, asserting that the dismissal itself constituted a serious breach of contract. However, the court ruled that it was difficult to conclude there was a gap in ADOR’s management duties and emphasized that merely dismissing Minhee Jungeun from ADOR did not constitute a fundamental violation of the contract’s obligations. Shortly after the ruling, ADOR issued a statement saying it had completed preparations for NewJeans’ official album and was waiting for them to resume activities, highlighting the progress on new music. According to materials submitted to the court, ADOR finished working on demo versions of new songs and submitted a list of tracks for NewJeans to the Seoul Central District Court in July. The list reportedly included at least five songs, appearing to be intended to prove that ADOR was diligently carrying out its management duties. From the industry’s perspective, NewJeans’ decision to return is seen as a rational choice, as continuing a prolonged legal dispute during their peak activity period would be detrimental to the members both professionally and financially. Through their legal representatives, NewJeans maintains that while they respect the court’s decision, their trust in ADOR has been completely destroyed, making it impossible to continue normal activities, and they have stated their intention to appeal. Meanwhile, this case is expected to be recorded as an important precedent in the K-pop industry that underscores the significance of exclusive contracts between artists and agencies.