As former ADOR CEO Min Hee-jin establishes her new entertainment label OOAK, speculations have begun about NewJeans joining Min Hee-jin’s new agency.
The girl group NewJeans is set to receive the first trial verdict on their lawsuit confirming the validity of their exclusive contract with ADOR, a HYBE subsidiary, on October 30. Depending on the ruling, it will determine the direction Min Hee-jin’s new company OOAK will take.
If the court rules in favor of NewJeans, declaring the termination of the exclusive contract with ADOR valid, NewJeans would legally gain independence.
In that case, OOAK, Min Hee-jin’s new company, could become the practical foundation for NewJeans’ resumption of activities. Industry insiders interpret Min’s establishment of the corporation ahead of the first trial as a “preemptive move for immediate response depending on the outcome.” If NewJeans wins, they could quickly resume various activities, including producing new music, planning content, and brand renewal, to fill the gap of over a year of inactivity.
However, variables remain. There are ongoing disputes between Min Hee-jin and HYBE regarding put options (stock purchase rights) and interpretations of non-compete clauses. If the non-compete clause is legally recognized, even if NewJeans wins and transfers to OOAK, HYBE could still file additional lawsuits.
Conversely, if the court rules that NewJeans’ exclusive contract with ADOR remains valid, NewJeans would have to honor the contract period scheduled until July 2029. Given the year-long hiatus, ADOR might also demand an extension of the contract period.
In this scenario, NewJeans’ transfer to OOAK would be practically blocked. Any attempt to transfer forcibly could be considered a breach of contract and infringement on third-party claims, potentially leading to billions of won in damages. Legal experts estimate that, considering NewJeans’ commercial value and remaining contract period, the penalty could be astronomical.
Even with Min Hee-jin establishing a new company, it is expected that direct collaborative activities with NewJeans would be difficult for at least the next five years. Industry insiders note, “Min Hee-jin has essentially bet on NewJeans winning, but if they lose, OOAK could realistically remain an empty shell.”
Since disputes over the non-compete clause with HYBE remain unresolved, HYBE could also challenge the establishment of OOAK itself. Min maintains the position that, “The shareholder contract was lawfully terminated, so no non-compete obligation exists.” However, depending on the court’s decision, this issue could emerge as a new point of contention.
The first trial verdict scheduled for October 30 is expected to be a turning point. If NewJeans wins, the likelihood of transferring to Min Hee-jin’s OOAK is very high. Conversely, if they lose, NewJeans would legally remain under ADOR, and OOAK would likely pivot to discovering new artists.
The outcome of this lawsuit is attracting attention not only regarding NewJeans’ agency affiliation but also for its potential to bring significant legal and industrial changes to the K-pop market.
