A South Korean court docket has ordered Okay-pop lady group NewJeans to halt their unbiased actions and return to working with label ADOR.
In an order on Friday (March 21), the Seoul Central District Courtroom granted HYBE-owned ADOR’s request for an injunction stopping NewJeans – who’ve rebranded themselves NJZ – from finishing up business actions exterior of their contract with ADOR.
NewJeans unilaterally declared final November that their contract with ADOR was null and void, alleging mistreatment and bullying by the hands of ADOR employees amid an ongoing battle between the label and its former CEO and NewJeans supervisor Min Hee-jin.
ADOR rejected NewJeans’ declaration and insisted that its contract with NewJeans members continues to be “in full impact.”
In December, the label went to court docket looking for to substantiate the validity of its unique contracts with NewJeans members, and in January, ADOR requested the court docket for a preliminary injunction to stop NewJeans from working exterior ADOR.
The court docket granted that request on Friday, saying that there’s “inadequate proof to help the claims made by the NewJeans members,” per Korea JoongAng Each day.
In a press release emailed to MBW, ADOR mentioned: “We specific our honest gratitude for the court docket’s even handed choice to grant the preliminary injunction. With our standing as NewJeans’ unique company now legally affirmed, we’re totally dedicated to supporting the artists going ahead.
“We will likely be totally current at ComplexCon this weekend to ensure the efficiency is introduced beneath the NewJeans identify. We eagerly anticipate assembly with the artists for a heartfelt dialog on the earliest alternative.
“We sincerely request your ongoing help and encouragement for NewJeans as they proceed to develop along with ADOR.”
“With our standing as NewJeans’ unique company now legally affirmed, we’re totally dedicated to supporting the artists going ahead.”
ADOR
In a put up on Instagram, NewJeans/NJZ mentioned they plan to enchantment the court docket’s choice.
“We at NJZ respect the court docket’s choice. Nevertheless, we imagine that the choice didn’t sufficiently take into consideration the truth that the belief of the members in ADOR was fully destroyed,” the group acknowledged.
NewJeans advised they misplaced the combat over the injunction as a result of they weren’t given sufficient time to put out their case.
“There are additionally many people who find themselves unable to cooperate because of the strain and retaliation of being concerned within the lawsuit,” the group added.
NewJeans’ severing of its relationship with ADOR despatched shockwaves by way of the Okay-pop business.
“We imagine that the choice didn’t sufficiently take into consideration the truth that the belief of the members in ADOR was fully destroyed.”
NewJeans/NJZ
In February, 5 commerce teams concerned with Okay-pop firms issued a press release warning that if NewJeans’ unilateral transfer to go away ADOR turned precedent, it might severely injury Okay-pop.
They linked NewJeans’ actions to “tampering” – the follow of labels and managers trying to lure artists away from their legally binding contracts.
“If tampering makes an attempt succeed, Korea’s leisure administration business will collapse,” the teams mentioned.
“This challenge extends past home disputes — overseas capital might step in and take over the Okay-pop business totally.”
The ruling represents a major authorized victory for HYBE and ADOR of their ongoing dispute with the Okay-pop group.
The authorized battle has escalated dramatically over latest months, with ADOR taking authorized motion to dam NewJeans from looking for unbiased offers along with requesting an entire ban on the group’s leisure actions following their rebranding announcement.
Throughout a court docket listening to on March 7, ADOR’s legal professionals revealed that HYBE had invested KRW 21 billion ($14.4 million) into creating NewJeans, and claimed every member had obtained settlement funds of roughly KRW 5 billion ($3.4 million) amid the authorized dispute.
“HYBE invested KRW 21 billion gained into ADOR, and NewJeans has been producing important income since 2023. It defies logic to recommend {that a} profit-driven firm would sabotage one among its largest earners,” ADOR’s authorized workforce argued on the time.
The group members had beforehand expressed their place in December 2024, stating that persevering with their relationship with ADOR would expose them to “additional injury.”
NewJeans held a press convention in November 2024 to announce they’d left ADOR, however the label maintained their contracts stay legitimate till July 31, 2029.
NewJeans’ authorized workforce has positioned the dispute as centered on an alleged breach of belief, accusing HYBE of orchestrating a media marketing campaign towards them and planning to exchange them with one other act.
The battle has raised important considerations inside South Korea’s music business. Final month, 5 commerce teams representing the Okay-pop sector issued a warning concerning the ongoing dispute, saying the case might destabilize the business if it units a precedent.
“If tampering makes an attempt succeed, Korea’s leisure administration business will collapse,” the teams mentioned in a press release. “This challenge extends past home disputes — overseas capital might step in and take over the Okay-pop business totally.”
The roots of the dispute hint again to April 2024 when HYBE alleged that Min Hee-jin, then CEO of ADOR and the particular person credited with creating NewJeans, had tried unlawfully to sever the label from HYBE, which owns a majority stake in ADOR. Min was changed as CEO final summer time.
The NewJeans controversy comes at a difficult time for HYBE. The Okay-pop big just lately reported that it swung to a internet loss of KRW 3.38 billion ($2.48 million) in 2024, versus a internet revenue of KRW 183.45 billion in 2023, amid rising prices and weak point in its recorded music section.
HYBE has attributed this decline in profitability partly to BTS’s short-term break, because the group as soon as accounted for lower than 20% of the corporate’s revenues in 2024, down from 95% at their peak.
A separate trial addressing the validity of NewJeans’ contract termination is scheduled for April 3, which can decide the long-term way forward for the connection between the Okay-pop group and ADOR.
Of their Instagram put up commenting on the continued authorized case over the validity of their contract with ADOR, the group mentioned: “Not like the injunction process, the principle lawsuit can extra freely make the most of the civil process regulation system to safe obligatory proof, so we anticipate that this can drastically strengthen the proof supporting the members’ claims.”Music Enterprise Worldwide