Topline<\/p>\n
NewJeans, an internationally successful K-pop girl group whose members\u2019 careers have been stalled amid a contract dispute with their label, lost a court battle to terminate the contract with ADOR, a subsidiary of South Korean entertainment giant HYBE, though the group says the ruling will be appealed.<\/p>\n
NewJeans and their label have been in a standoff since early 2024. (Photo by Han Myung-Gu\/WireImage)<\/p>\n
WireImageKey Facts<\/p>\n
A South Korean court said Thursday<\/a> NewJeans\u2019 contract with record label ADOR, which is scheduled to end in 2029, remains valid, a year after the group attempted to exit the contract after accusing parent company HYBE of mistreatment.<\/p>\n NewJeans tried to break free from the contract last year in a highly publicized dispute after HYBE fired then-ADOR CEO and NewJeans executive producer Min Hee-jin, with NewJeans also accusing the company of intentionally ostracizing it from other artists and failing to act when the group\u2019s private medical records were leaked.<\/p>\n A law firm representing NewJeans said in a statement it plans to appeal the ruling.<\/p>\n ADOR said the ruling upholds its \u201cposition of management agency under the exclusive contract, and that the artist must engage in entertainment activities along with us,\u201d adding it hopes NewJeans will \u201ccalmly reflect on this matter,\u201d in a statement shared with Forbes.<\/p>\n The label added it has \u201ccompleted preparations for the artist’s activities, including the release of a studio album, and are waiting,\u201d though NewJeans reportedly said<\/a> upon the ruling it is \u201cimpossible to return to ADOR\u201d as trust between the group and label has been \u201ccompletely broken.\u201d<\/p>\n HYBE shares jumped Thursday morning, rising as much as 7.12% with its market capitalization adding $644 million, CNBC reported<\/a>. <\/p>\n Key Background<\/p>\n The standoff between NewJeans and its record label began in early 2024 after parent company HYBE\u2014the South Korean entertainment giant behind groups like BTS\u2014accused Min of trying to break free from HYBE to manage NewJeans independently, though Min denied these allegations. She was fired as ADOR\u2019s CEO in August 2024, and NewJeans demanded<\/a> she be reinstated in a livestream in September, where they detailed accusations of alleged mistreatment by HYBE. HYBE\u2019s dismissal of Min \u201cmade it clear to us that they don\u2019t respect us at all,\u201d NewJeans member Haerin said, with member Danielle adding Min is \u201cirreplaceable\u201d and \u201cmade NewJeans who we are.\u201d In one allegation, member Hanni said she greeted another group signed to HYBE while at the company\u2019s office, alleging that group\u2019s manager told its members to \u201cignore her.\u201d Hanni repeated this allegation in testimony<\/a> to the South Korean National Assembly\u2019s Labour Committee the following month, alleging the \u201ccompany hated us,\u201d also accusing HYBE of instructing journalists to downplay the group\u2019s achievements in news coverage. In November, NewJeans said it planned to leave its label, but ADOR petitioned a court<\/a> in December to uphold the group\u2019s contract. NewJeans announced a hiatus<\/a> in March, citing the \u201cmental and emotional toll\u201d of the court battle, and in May, a South Korean court ruled<\/a> NewJeans must pay a hefty fine equivalent to $725,000 for performances and music releases not authorized by the label.<\/p>\n Crucial Quote<\/p>\n \u201cMy heart is with you NewJeans,\u201d singer Kesha posted<\/a> on X after the ruling. Kesha previously sued producer Dr. Luke, alleging sexual harassment, and tried to break free from their contract in a legal dispute that was settled<\/a> in 2023.<\/p>\n How Is The Newjeans Case Unprecedented?<\/p>\n The highly publicized dispute between NewJeans and its label is considered unprecedented for the K-pop industry, in which labels are known for having tight control over artists and their public images. Michael Hurt<\/a>, a lecturer at Seoul\u2019s Korea National University of Arts, said in 2022 labels are \u201cextremely strict in how it regulates the public appearance and the image of their groups,\u201d and that K-pop stars are discouraged from dating or having \u201ccontrol of their own lives.\u201d In 2024, K-pop star Karina garnered international attention for apologizing<\/a> to fans after her relationship with an actor was made public, promising to show a \u201cmore mature and hardworking side\u201d of herself. Multiple deaths<\/a> by suicide in recent years\u2014including Moonbin, singer in the group Astro, and Sulli, a singer in the group f(x)\u2014have prompted scrutiny of working environments for K-pop stars.<\/p>\n Who Is Newjeans?<\/p>\n NewJeans was formed by ADOR in 2022 following months of auditions, and the five-member group released its first EP, \u201cNew Jeans,\u201d that year. The group initially found success in South Korea, but broke out internationally the following year with its EP \u201cGet Up,\u201d which debuted at No. 1 on the Billboard 200 chart in the United States. NewJeans released a string of hit singles, including \u201cSuper Shy\u201d and \u201cETA,\u201d both of which charted on the Billboard Hot 100, and the group has 14 million monthly listeners on Spotify despite not releasing any new music in more than a year. <\/p>\n Further Reading<\/p>\n