Speculation is continuing to grow about the next steps for NewJeans following their unexpected announcement of terminating their exclusive contract with ADOR and HYBE.
On December 2, The Daily Sports (IS) published a report analyzing the group’s projected future after their "surprise announcement." The termination was reportedly triggered by ADOR’s failure to meet a set deadline for rectifying issues raised by the group.
The outlet noted that ADOR has "taken no substantial action" while NewJeans continues to fulfill existing schedules as "free agents." HYBE, after confirming receipt of the termination notice, stated they "plan to respond appropriately," leaving the entertainment industry on edge as it awaits further developments.
Legal experts have explained that under Korean civil law, a contract termination becomes effective as soon as the notice is delivered to the other party. To contest this, the party claiming the contract’s validity would need to prove their case in court. Consequently, ADOR is now tasked with filing a lawsuit to challenge the validity of NewJeans’ termination notice.
Lawyer Noh Jong Un clarified, "Even if the court ruling comes a year or two later, it will retroactively validate or invalidate the termination from the date it was declared, not the ruling date itself." This leaves ADOR in a precarious position, unable to prevent NewJeans from pursuing independent activities during the litigation process.
Potential scenarios moving forward include:
Can ADOR Suspend NewJeans’ Activities?
If ADOR detects signs of NewJeans entering agreements with another company, they could file for an injunction to suspend the group’s activities. However, such an action could contradict ADOR’s stated commitment to supporting NewJeans.
Lawyer Noh noted, "ADOR might consider applying for an activity suspension injunction, but doing so would undermine their claim of protecting NewJeans and could be interpreted as further eroding trust."
Will ADOR Pursue Compensation Claims?
While ADOR could issue a termination notice and file for damages against NewJeans, experts believe significant financial consequences are unlikely. Lawyer Jo Myun Shik commented, "NewJeans’ ideal scenario would involve ADOR terminating the contract themselves and pursuing damages."
He added, "(ADOR) may file for astronomical damages, but there’s no need for NewJeans to worry. It’s unlikely that courts would award a shocking amount that would astonish the world. What NewJeans is anticipating is precisely this. ADOR is trapped in a situation where they can neither act decisively nor ignore the matter, forcing them to file a lawsuit reluctantly. Cases like this aren’t about winning or losing based on legal logic."
Is Negotiation between NewJeans and ADOR a Possibility?
Despite the growing tension, a negotiation between NewJeans and ADOR remains a potential solution. Prolonged disputes risk tarnishing both parties’ reputations, making a mutual agreement the most practical outcome.
A management insider shared, "Both sides might recognize that the situation is irreparable and find it realistic to negotiate detailed terms."
Some argue that resolving the issue requires a balanced approach that respects industry norms and encourages open dialogue. This is especially pertinent as NewJeans is likely to continue working with former ADOR CEO Min Hee Jin. With HYBE’s current position, adopting a collaborative stance might help prevent further damage.
What are your thoughts on the future of NewJeans and ADOR?
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