American Marconi Wireless News - Court rules against K-pop group NewJeans in contract dispute

The group made headlines in November by announcing their decision to leave ADOR, whose parent company HYBE is behind K-pop sensation BTS.

The label later filed for an injunction to maintain its status as the managing agency of NewJeans, requesting that the Seoul Central District Court prohibit the group's members from engaging in independent commercial activities.

The court on Friday sided with ADOR, issuing a ruling that the group -- now branding themselves as NJZ -- must not pursue independent endeavours.

The court said in a statement that if the group "unilaterally terminate their exclusive contract" with ADOR, and change their name autonomously, the label would suffer "significant damages".

The group's actions would also "severely damage not only the brand value of NewJeans but also ADORE's reputation as a management company," the court added.

NewJeans made their debut in 2022 and the K-pop phenomenon is among HYBE's most successful acts.

NewJeans and ADOR have been caught in the heated contract dispute since August, following allegations that HYBE forced out the group's star producer, Min Hee-jin.

The band issued an ultimatum for Min's reinstatement, which HYBE declined.

In response, the members took their grievances public, accusing the label of intentionally sabotaging their careers.

Band member Hanni alleged last year that the group experienced workplace harassment, such as "deliberate miscommunications and manipulation regarding multiple areas" while working with ADOR.

"This is not the type of work ethic we respect and not one we want to be a part of, and to continue working under a company with no intention of protecting NewJeans would only do us harm," she said at the time.

But the court on Friday said that based on the claims and evidence submitted by the group, it is "difficult to conclude that ADOR has sufficiently violated the essential obligations of the exclusive contract".

ADOR welcomed the court's "judicious" decision, and said they "eagerly anticipate meeting with the artists for a heartfelt conversation at the earliest opportunity".

"With our status as NewJeans' exclusive agency now legally affirmed, we are fully committed to supporting the artists going forward," the label said in a statement.

M.Fischer--AMWN