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. The formal notice outlines six specific demands for corrective action to address what the group describes as a complete breakdown in trust. It also contains 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. This is 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. It also talks about 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 ILLIT 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 detailed strategies to exclude NewJeans from the elite fourth-generation girl group category while redirecting industry narratives toward other HYBE groups, has sparked significant controversy. Many have interpreted it as evidence of a deliberate internal decision to sideline the group, further supporting the members' claims of mistreatment and lack of support. These concerns were amplified following the group’s September emergency broadcast, during which they alleged a hostile environment within ADOR and HYBE. The broadcast highlighted issues stemming from a management restructuring that left the group feeling unprotected, particularly troubling as some members are minors requiring additional safeguards under their contracts.

Given the sensitive nature of these allegations, especially those involving minors, industry experts suggest that NewJeans could argue in court that the trust essential to an exclusive contract has been irreparably broken. Legal analysts note that trust, rather than the specifics of grievances, often determines the outcome in contract termination cases. If the matter proceeds to litigation, HYBE and ADOR’s perceived inaction on protecting their artists, particularly minors, could significantly weaken their position.

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. Although 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.

With the deadline looming, all eyes are on HYBE to see whether they will address NewJeans' demands in a way that could salvage their relationship or if the dispute will escalate into a highly publicized legal battle. Such a conflict could have significant implications for the future of artist-agency dynamics in the entertainment industry, especially given NewJeans' evident willingness to challenge their agency head-on to defend their interests and autonomy.