This resolute statement was the opening sentence of the press conference held by the girl group NewJeans on the evening of November 28 in Gangnam, Seoul. Announced just two hours earlier, the emergency press conference underlined the group’s urgency and determination. Perhaps to emphasize their resolve, NewJeans allowed live streaming of the event, echoing former ADOR CEO Min Hee-jin’s impactful livestream press conferences. At the event, the five members presented a united front, demonstrating their firm position. However, questions remain. Are their claims legally enforceable?
During the press conference, NewJeans answered several questions. However, they struggled to provide a definitive answer: “Have you been audited?“
When asked, members stated: “We terminate the contract because HYBE and ADOR have violated it. We have had sufficient discussions, sent a certified letter and acted according to the terms outlined in that letter.”
Reporters pressed further, questioning whether the original contract included a clause stating that failure to respond within two weeks of raising an issue would result in termination. The group responded ambiguously: “Legal discussions are ongoing and there has never been a case like ours before.”
The host of the press conference clarified: “The legal review process is still ongoing.” This suggests that the announcement was not made after careful legal advice.
To terminate an exclusivity contract you must follow a series of legal steps, which often include seeking a preliminary injunction to suspend the validity of the contract. Once granted, the validity of the contract is immediately suspended, allowing individual activities and new contracts with other agencies. Liability and violations are subsequently established in a main case. When asked whether to seek such an injunction, NewJeans said it was not necessary, “Since ADOR and HYBE have breached the contract and termination makes the contract invalid, our future activities will not be affected. We therefore believe an injunction is not necessary.”
However, such a precedent is rare. If NewJeans proceeds without legal approval, it risks being accused of breach of contract. Some speculate that NewJeans could try to get ADOR to take legal action, which could later justify claims of breach of trust, a key factor in obtaining an injunction.
A major risk is a potential criminal case. Estimates suggest that NewJeans could face fines of up to KRW600 billion. The scale depends on whether their actions are considered breaches of contract. Independent businesses without legal validation could result in higher fines and harm their case.
In contrast, some legal experts support NewJeans’ approach. Lee Hyun-gon, a lawyer from Saeol Law Firm, noted: “The most noticeable aspect of the press conference is their decision not to pursue an injunction. This is unprecedented. By not filing, NewJeans avoids being tied down until a decision is reached, instead forcing ADOR to file a lawsuit.“
However, such actions call into question the fundamental principle of contracts as legally binding agreements.
In this regard, ADOR denied: “It is regrettable that a severance press conference was held without adequate review or waiting for a response to the certified letter. ADOR has not breached the contract and claims of breach of trust do not constitute valid grounds for termination.“
The conflict between NewJeans and ADOR has reached a critical point, making a legal battle inevitable. While the NewJeans fandom remains strong, the controversy risks alienating neutral audiences.
Source: Daum
