One of K-pop’s top girl groups, NewJeans, recently made headlines by rebranding as NJZ amidst their ongoing legal battle with their managing label, ADOR, a subsidiary company to HYBE.
The Rise of NewJeans and the Conflict with ADOR
NewJeans, consisting of members Minji, Hanni, Danielle, Haerin, and Hyein, officially debuted in August of 2022 under the direction of ADOR’s CEO Min Hee-jin. The group quickly soared to global fame, becoming the fastest K-pop act to reach one billion streams on Spotify. However, internal conflicts emerged leading to Min Hee-jin’s dismissal in August 2024, which intensified disputes between NewJeans and ADOR.
Following Min Hee-jin’s removal, NewJeans accused ADOR of mistreatment and mismanagement. Member Hanni publicly detailed allegations of workplace harassment during a National Assembly hearing. However, these claims were later dismissed by the South Korean Labour Ministry. Despite this, NewJeans held an emergency press conference announcing their contract termination with ADOR, declaring the group independent from the label.
Can NewJeans Legally Terminate Their Contracts?
Under South Korean law, unilateral contract termination is possible if a party can prove a material breach by the other party. Article 103 of the Korean Civil Act states that any legal act violating public policy or social order is null and void. If NewJeans can argue that ADOR’s alleged mistreatment constitutes a violation of social ethics or an abuse of power, the group may use this as grounds for termination. Article 288 establishes that a contract can be terminated when one party fails to fulfill essential obligations. NewJeans could argue that ADOR’s alleged mismanagement falls under this category. Lastly, Article 543 outlines the conditions under which a party can withdraw from a contract, particularly if a fundamental breach of terms has occurred. If NewJeans can prove ADOR failed in its duty to manage the group properly, this article could support its case.
NewJeans’ key legal argument depends on proving that ADOR breached its contractual duties—whether through mismanagement or failure to protect the group from emotional harm. In past K-pop disputes, courts have ruled in favor of artists when agencies failed to protect them, imposed unfair contractual terms including excessively long contract durations and restrictive personal lifestyle clauses, or neglected obligations such as promotion and financial transparency.
ADOR’s Argument: Why They Are Fighting to Keep NewJeans
Despite NewJeans’ claim that they have terminated their contracts, ADOR continues to argue that the group is still legally bound to the company.
ADOR states that NewJeans’ contracts remain valid because termination without sufficient legal grounds is not enforceable under Korean contract law. The company argues that the dismissal of NewJeans’ claims of mistreatment by the Ministry of Employment and Labor weakens their justification for termination. ADOR also highlights that a contract remains binding unless a court officially rules otherwise, meaning NewJeans are still required to fulfill their contractual duties under the company.
ADOR could draw from past legal cases where entertainment companies successfully retained contractual control over their artists despite disputes. Potential precedents in this legal battle include the 2014-2015 lawsuit between EXO members Kris, Luhan, and Tao against SM Entertainment. The three Chinese members filed lawsuits to terminate their contracts, citing unfair treatment, excessive work schedules, and lack of health support. The lawsuit dragged on for years with Kris and Luhan settling in 2016, while Tao’s case lasted until 2018. The courts ruled that the members could work independently in China, but SM Entertainment would retain all contractual rights over them until 2022. This meant that SM Entertainment got to retain its management rights in Korea and Japan, and also got a share of the revenues the members made in China and elsewhere. Expecting a similar result, ADOR may block NJZ from performing, signing new contracts, or using the “NewJeans” brand until the court makes an official ruling which could take years.
On the other hand, the ruling on Kang Daniel’s 2019 lawsuit with LM Entertainment offers potential support for NewJeans’ legal argument. In the lawsuit, the former Wanna One member sued his agency for selling his rights as an artist to a third party (MMO Entertainment) without consent or contractual authorization. The court ruled in Kang Daniel’s favor, allowing him to terminate his contract and create his own company, KONNECT Entertainment. If NewJeans can prove that ADOR breached their contract through mismanagement or unfair business practices, the group could win the case and operate independently as NJZ.
The NJZ Rebrand: A Strategic Yet Risky Move
Despite the ongoing legal battle, NewJeans rebranded as NJZ, suggesting their intent to continue activities independently. However, their rebranding comes with legal risks. NJZ could face trademark issues since ADOR has ownership of the “NewJeans” name, branding, and intellectual property. This could limit NJZ’s ability to perform their old songs or use related imagery. If ADOR wins the case, NJZ could face penalties for attempting to bypass their contractual obligations.
What’s Next?
The legal battle between NewJeans and ADOR can reshape K-pop’s legal landscape. NJZ winning could empower idols to challenge their contracts and push for fairer treatment in the industry. If ADOR prevails, it could reinforce a precedent giving credence to contractual obligations. With both sides deeply invested in the outcome, this case is set to be one of the most significant legal battles in K-pop history.