NewJeans has officially decided to terminate their exclusive contract with ADOR. The group stated that they had made a final demand for the agency to address breaches of the agreement but proceeded with their decision after the agency failed to take any corrective action.
The group notified the press of an emergency conference before receiving ADOR’s official response, suggesting that the members had likely already resolved to part ways from the label. At the event, the members greeted reporters with smiles before announcing their plans to terminate the exclusive contract. They also expressed their determination to legally reclaim their team name from ADOR, even if they are unable to use it temporarily.
Hanni stated, “The trust between us and ADOR has completely broken down, and it is impossible to maintain the contractual relationship with the agency. ADOR should have protected NewJeans, but they failed to fulfill their basic obligations. Continuing the contract would only waste our time and prolong our emotional suffering.”
The group clarified that the termination would take effect on November 29th. They had previously warned ADOR of the potential contract termination, requesting corrective action by midnight on November 28th. With no changes made, they declared the contract null and void as of the stated deadline. Hyein added, “There are only four hours left until the deadline we announced. If ADOR had any intention of addressing the issues, they would have acted long ago.”
Contractual Penalty
The controversy surrounding NewJeans’ contract termination has sparked discussions about the potential damages they might owe. ADOR executives previously estimated that these damages could range between 450 billion and 620 billion won ($323 million to $444 million). Such damages refer to the compensation an artist must pay to an agency for terminating a contract before its expiration.
Addressing these potential penalties, Haerin stated, “We have not violated the exclusive contract and have always done our best in our activities. Therefore, there is no reason for us to pay any penalties. This issue arose because of ADOR and HYBE’s breaches of the contract, and they should be held accountable.”
The members also accused ADOR of falsely portraying itself as an independent label separate from HYBE, while in reality, the two operate as a single entity. Additionally, they claimed that ADOR showed little interest in addressing their concerns and announced their intention to make the company’s responses public.
Provisional Injunction Filing and Future Plans
The group stated they would not file for a provisional injunction to suspend the contract’s validity. Minji explained, “We’ve done nothing wrong. The contract is automatically terminated due to ADOR and HYBE’s violations, so there is no need for an injunction. We plan to continue our scheduled activities without disruption.” NewJeans is set to depart for Japan on November 29th. She further expressed, “Fourteen days was not enough time. It’s heartbreaking that this process moved forward without proper discussions with the members. It was all lies and excuses.”
Regarding future plans, Danielle shared, “We will fulfill all pre-scheduled commitments and contracted advertisements, as we have no intention of causing harm to others due to our contract termination.” Minji added, “If possible, I would like to continue working with CEO Min Hee Jin.”
NewJeans has already announced several year-end and New Year schedules. On December 7th, they are set to perform at Japanese artist YOASOBI’s concert in Korea. On Christmas Day, they will appear at the 2024 SBS Gayo Daejeon. They are also included in the lineup for the final day of the Countdown Japan 24/25 festival, held from December 28th to 31st in Tokyo.
ADOR’s Official Response
The 40-minute press conference included an English statement and a Q&A session for international fans. One hour later, ADOR issued an official response, arguing that the members’ claim of broken trust does not constitute valid grounds for terminating the contract and asserting that the conflict between the two parties is far from over.
Market Impact: HYBE Shares Plunge
Meanwhile, HYBE’s stock price plunged more than 6% after NewJeans’ announcement, reflecting investor concerns over the group’s departure from ADOR. HYBE holds an 80% stake in ADOR.
The Korea Exchange reported on November 29th that HYBE’s stock price experienced a significant decline during the trading session. By 9:14 a.m., HYBE shares were trading at 190,900 KRW marking a 6.19% decrease (12,600 KRW) from the previous day’s closing price. Earlier in the session, the stock had dropped further to 189,300 KRW, marking a 6.98% decline and briefly falling below the 190,000 KRW mark before recovering slightly.
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