Min heejin, the former CEO of ADOR, a subsidiary of HYBE, finds herself at the center of a legal and financial dispute regarding NewJeans’ exclusive contract. Reports suggest that terminating the contract with the globally popular girl group could result in penalty fees ranging from ₩4.5 trillion to ₩6.2 trillion.
In March 2024, internal discussions between MIN and two former ADOR executives emerged during court proceedings, revealing calculations of the potential financial penalties tied to NewJeans’ contract termination. This information was uncovered amid Kim’s legal challenge against HYBE regarding voting rights within the company. Kim’s side clarified that these calculations were only rough estimates aimed at evaluating ADOR’s corporate value.
NewJeans debuted in July 2022 under a typical seven-year contract, leaving approximately five years of obligations remaining. Analysts estimated the penalties by multiplying the group’s average monthly revenue (approximately ₩20 billion per member) over the remaining 62 months, resulting in around ₩1.24 trillion per member and ₩6.2 trillion collectively.
Proving ADOR’s Breach of NewJeans’ Contract Chall
Legal professionals argue that proving ADOR’s fault in a breach of contract would be challenging. Attorney Cho Gwang-hee explained that NewJeans’ claims against ADOR were mostly linked to grievances against HYBE, which is legally a separate entity. Unless NewJeans can establish specific violations of their contract terms by ADOR, the contract is likely to remain enforceable.
The controversy escalated after NewJeans sent a formal notice to ADOR on November 13, citing six issues, including workplace harassment and improper handling of personal data. They demanded corrective measures within two weeks, threatening to terminate their exclusive contract if their demands were unmet. Observers speculate that the group’s ultimate goal was the reinstatement of Min heejin, but her resignation from ADOR on November 20 makes this outcome unlikely.
The Path Ahead
As the deadline for resolution approaches, the potential for a legal battle involving billions of won looms large. The situation raises critical questions about artist rights, corporate accountability, and the broader implications for the K-pop industry. How the dispute unfolds could significantly impact NewJeans, ADOR, and HYBE’s reputations and operational strategies.
