filibet NewJeans’ options after ADOR rejects request to reinstate Min Hee-jin

NewJeans members (from left) Danielle, Haerin, Hanni, Hyein, and Minji. Image: X/@NewJeans_ADOR

ADOR, the K-pop agency behind NewJeans and a subsidiary of HYBE, confirmed on Wednesday, Sept. 25 that it will not honor the girl group’s request to reinstate former CEO Min Hee-jin. The agency cited its adherence to the K-pop giant’s principle of separating management and production. However, its subsidiary said Min could continue as an internal director and NewJeans’ producer.

“The board has resolved to convene an extraordinary shareholders’ meeting to reappoint Min Hee-jin as an internal director,” ADOR said in an official statement. “However, the board cannot accept the request for her reinstatement as CEO at this time. Min Hee-jin’s role and authority as the producer for NewJeans are fully guaranteed, and further discussions on specific terms will take place in the future.”

Article continues after this advertisement

Min immediately issued a press release, once again requesting her reinstatement as CEO to ensure the continued success and performance of the artists under her guidance.

FEATURED STORIES ENTERTAINMENT Alodia Gosiengfiao on her first pregnancy: ‘It’s a lot of work but exciting’ ENTERTAINMENT ‘Bling Empire’ star Kevin Kreider honored to join ‘Hello, Love, Again’ cast ENTERTAINMENT Loisa Andalio hopes to inspire young ones in esports film ‘Friendly Fire’

ADOR’s decision leaves NewJeans with limited options. The group must either remain at HYBE under the leadership of the new Ador CEO Kim Ju-young, find legal grounds for contract violations to take action and part ways, or pay a substantial penalty to terminate its contract and work with Min outside of ADOR.

On Sept. 11, NewJeans broke their silence on the ongoing dispute between Min and HYBE, stating, “What we want is for ADOR to return to its original state, with (former) CEO Min Hee-jin overseeing both management and production. We believe this is the way to coexist peacefully with HYBE without conflict.”

Article continues after this advertisement

This captured image shows NewJeans members in their YouTube livestream on Wednesday, Sept. 11. Screengrab from YouTube/nwjns

The statement is seen as a strategic move, likely preparing for potential legal action. Before filing an injunction to suspend the group’s exclusive contract, NewJeans appears to be giving HYBE, who they consider the liable party, a chance to correct any violations.

Article continues after this advertisement

According to Article 15 of the Standard Contract for Popular Culture and Arts Professionals, proposed by the Fair Trade Commission, if either the “agency” or the “artist” breaches the contract, the other party may request the breach be corrected within 14 days. If the breach is not rectified within this period, the contract may be terminated and damages may be claimed. This is why NewJeans set a deadline of Sept. 25, two weeks after their live broadcast on Sept. 11, for a response from HYBE.

Article continues after this advertisement

However, even if NewJeans pursues a contract termination lawsuit after 14 days, basing its case on Min’s dismissal may not be sufficient.

“NewJeans is likely to argue for a suspension of the contract’s validity based on ADOR’s failure to meet its obligations or a breakdown in the trust relationship. However, it is difficult to claim that ADOR has violated key contractual obligations, such as payment settlements,” said Lee Jae-kyoung, a professor at Konkuk University Law School and president of the Korea Entertainment Law Society, on Wednesday. “NewJeans’ request for Min’s reinstatement as CEO would interfere with management decisions, which may not be a legally persuasive argument in court.”

Article continues after this advertisement

Another option for NewJeans is to terminate the contract by paying a penalty, reportedly estimated to be between 300 billion won ($225.8 million) and 500 billion won.

The exact penalty amount is unknown, as the details of NewJeans’ contract have not been publicly disclosed. However, according to the Ministry of Culture, Sports, and Tourism’s standard exclusive contract, penalties are calculated based on the artist’s average monthly sales over the past two years, multiplied by the remaining months in the contract.

NewJeans is believed to have about five years left in the contract and ADOR’s revenue over the past two years is estimated to be around 190 billion won. This places the penalty for termination in the range of 450 billion to 500 billion won, making contract termination a financially challenging route.

However, music critic Lim Hee-yun believes paying the penalty might be the easiest solution if the band insists on its original request.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

“Just as G-Dragon joined Galaxy Corporation, a relatively unknown IT company, it’s possible that a wealthyfilibet, random company could step in and take them on,” Lim said Wednesday.

READ NEXT Mark Bumgarner stands by Pia Wurtzbach on recent fashion week ... Ahtisa Manalo sprains ankle after reported Miss Cosmo stage co... EDITORS' PICK Central Visayas’ most wanted killed in shootout in Argao, Cebu VP Sara Duterte says she still sees Sen. Marcos as a 'friend' Espenido retracts drug-related allegations vs De Lima NBA: Nuggets give Aaron Gordon 4-year, $133M extension SC issues TRO vs Comelec resolution on dismissed public officials Party-list system: What to know ahead of 2025 polls MOST READ SC issues TRO vs Comelec resolution on dismissed public officials Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas LIVE UPDATES: Tropical Storm Kristine Walang Pasok: Class suspensions on Wednesday, Oct. 23 View comments

• amp
• #8217
• filibet
• NewJeans
• options