NewJeans Takes Legal Action Against ADOR Over Contract Dispute; Sparks Call to Reexamine Trust Framework in K-Pop Industry

The dispute surrounding NewJeans’ unilateral termination of its contract with ADOR and ADOR’s legal countermeasures has intensified debates about the agency system within the K-Pop industry. The legal resistance led by the group’s minor members has brought to light structural issues within the industry. NewJeans unilaterally ended its contract with ADOR in November. Members Lee Eui-jin (16), Kim Min-ji, Danielle Marsh, Kang Haerin, and Pham Ngoc Han alleged they suffered from “unfair treatment,” “discrimination,” and “harassment at work” at ADOR. ADOR denied all these claims. All five members are under 21 years old, making it extremely rare for minors to take the lead in confronting their agencies in the K-Pop industry. ADOR’s parent company, HYBE, filed a preliminary injunction request with the Seoul Court in January, asking the court to prohibit the NewJeans members from conducting any new promotional activities without management approval. In February, after NewJeans reappeared under the name NJZ, HYBE expanded its request to forbid the release of new songs and international performances. The court recently granted part of the preliminary injunction request. Since their Debut in August 2022, NewJeans has reached the Billboard Hot 100 chart with songs such as “Super Shy,” “OMG,” and “Ditto,” and has earned Guinness World Records recognition. They have also served as ambassadors for globally renowned brands like Coca-Cola, Apple, and Powerpuff Girls. With NewJeans’ departure, HYBE lost approximately $500 million, roughly half of its market capitalization. Organizations in the K-Pop industry have emphasized the importance of a trustworthy agency system in response to this incident. Steve Choi, Secretary-General of the Korea Music Content Association (KMCA), explained, “The K-Pop industry is built on mutual trust between agencies and artists. This relationship is similar to how teams are connected in sports, not an employer-employee relationship.” Five other organizations, including the Korea Music Management Association, the Korea Entertainment Producer Association, the Record Industry Association, and the Music Industry Association, also issued a joint statement expressing the same view. On the other hand, NewJeans’ fan club, Bunnies, claimed the dispute is not caused by scouting practices between agencies, often referred to as “taeping.” The fan club argued that HYBE has violated the independence and diversity of its subsidiaries and infringed upon the rights of producers, creators, and artists. They further demanded that industry organizations, which they said are already siding with HYBE and ADOR before any court decision, address real issues in the industry such as agency abuse of power and the proliferation of harmful media. This dispute has triggered discussions about new regulations for the agency system in the K-Pop industry. As political figures and the public show increasing interest, ongoing debates over structural improvements within the K-Pop industry are expected to continue.