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Posted by Grace-HA 3 hours ago 11,764

NewJeans sends official notice to terminate the contract with ADOR: Is 'Leaving HYBE' on the horizon?

AKP STAFF

NewJeans, one of the most prominent girl groups under ADOR, has officially taken a decisive step in its escalating conflict with its agency and parent company, HYBE, by sending a formal notice on November 13, 2024, that outlines six specific demands for corrective action to address what the group describes as a complete breakdown in trust, with a stern warning that failure to meet these demands within 14 days will result in the termination of their exclusive contracts, further deepening the ongoing turmoil that has plagued HYBE since its fallout with Min Hee-jin, the former CEO of ADOR.

The notice, which has drawn significant attention after its details were made public by Channel A, highlights a series of grievances including allegations that HYBE has internally dismissed and sidelined NewJeans, as evidenced by reports that the company referred to them with language suggesting that the group could be ‘discarded’ and the industry's direction ‘rebuilt,’ along with accusations of neglect toward disrespectful comments allegedly made by a manager from another label toward member Hanni, dismissive remarks about the group’s achievements by HYBE’s PR director, and failure to address the unauthorized release and ongoing circulation of pre-debut materials such as photos and videos of the group.

Additionally, the demands emphasize the group’s frustration with what they describe as the undervaluation of their achievements due to alleged chart manipulation tactics that undermined their comparative success and the unnecessary disputes involving director Shin Woo-seok, which resulted in the loss of previously completed works, and they make it clear that unless these issues are fully addressed within the given timeframe, the group sees no path forward to restore the trust necessary to maintain their contractual relationship with ADOR.

This development is the latest in a series of controversies involving NewJeans, HYBE, and Min Hee-jin, who had been embroiled in a highly publicized fallout with HYBE, with tensions surfacing earlier this year during a National Assembly audit on October 24, where the disclosure of a leaked ‘Industry Trend Report’ written under HYBE Chairman Bang Si-hyuk’s directive revealed internal documents that appeared to not only diminish NewJeans’ status within the company but also promote other HYBE-affiliated acts such as I’LL-IT and LE SSERAFIM as potential replacements for NewJeans in the top-tier girl group narrative, a revelation that has since fueled accusations of betrayal and neglect toward the group.

This report, which described strategies to exclude NewJeans from a category of elite fourth-generation girl groups while suggesting a redirection of industry narratives toward other HYBE groups, has been particularly controversial because it has been interpreted as evidence of a deliberate internal decision to sideline the group, further reinforcing the members' claims of mistreatment and lack of support, especially in light of their September emergency broadcast, during which they alleged a hostile environment within ADOR and HYBE, exacerbated by a management restructuring that left the group feeling unprotected and unsupported, particularly as some members are minors who require heightened safeguards under agency contracts.

Given the sensitive nature of these allegations, particularly those involving minors, industry experts have pointed out that NewJeans is well-positioned to argue in court that the fundamental trust required for an exclusive contract has been irreparably damaged, with legal analysts emphasizing that the issue of trust, rather than the specifics of the grievances, is often the determining factor in cases of contract termination, and many believe that HYBE and ADOR’s perceived inaction on these matters, particularly regarding the protection of their artists, could severely weaken their position if the case proceeds to litigation.

Adding to the complexity of this situation is the recent disclosure that Min Hee-jin has exercised a put option to sell her shares in ADOR back to HYBE, a move that could potentially entitle her to KRW 26 billion (approximately USD 20 million) under the terms of a shareholder agreement, though HYBE has countered that the agreement is no longer valid, signaling yet another legal battle that could further complicate the company's already precarious position as it faces growing public and industry scrutiny over its handling of the NewJeans controversy.

As the deadline approaches, all eyes are on HYBE’s next steps to determine whether they will address NewJeans’ demands in a manner that could potentially salvage the relationship, or if this dispute will culminate in a highly publicized legal battle that could have far-reaching implications for the future of artist-agency dynamics in the entertainment industry, particularly as NewJeans has already demonstrated a willingness to confront their agency head-on in defense of their interests and autonomy.

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