Although ADOR, HYBE’s subsidiary, won the first trial in the lawsuit over the validity of its exclusive contract with girl group NewJeans, the prolonged conflict has left both sides dealing with a staggering drop in revenue. New Jeans with a shaken status as Gen Z icons.
On October 30, the 41 Civil Division of the Seoul Central District Court, presided over by Judge Jeong Hoe-il, ruled in favor of ADOR, confirming that the exclusive contracts with the five New Jeans members remain legally valid. Accordingly, the group is not permitted to undertake independent activities without the consent of ADOR.
Despite the legal victory, the prolonged litigation caused significant damage. ADOR’s revenues plummeted and New JeansThe expansion of brand value has stopped.
The lawsuit was filed later New Jeans members declared contract termination, citing unmet demands such as the reinstatement of former CEO Min Hee-jin and an end to HYBE’s alleged devaluation of their results. However, the court did not accept these reasons as justification for breaking the contract.
From debut in 2022, New Jeans grew rapidly with record-breaking success. Their debut album sold over 310,000 copies in its first week, setting a new record for debuts by female groups. Their debut song “Attention” became the first debut K-pop song to enter Spotify’s US weekly chart, and their YouTube channel reached 1 million subscribers in just two months. By November 2023, their Spotify streams had surpassed 3 billion.
However, the ongoing legal conflict has dealt a severe blow to both ADOR and New Jeans. ADOR, which recorded sales of KRW 110.3 billion last year, recorded only KRW 17.2 billion in the first half of this year, a 72% decline compared to KRW 61.4 billion in the same period in 2024.
So far, revenues come largely from pre-litigation advertising and performance contracts. With no new sponsorships or events scheduled for the second half of 2025, the outlook remains bleak. ADOR’s only active artists are New Jeans.
The group, meanwhile, faces its own setbacks. Due to the court ruling that they must receive ADOR approval for any activity, New Jeans is currently on hiatus. Industry experts warn that prolonged inactivity could damage their brand value and reduce their competitiveness in the rapidly evolving K-pop landscape.
The situation draws comparisons with FIFTY FIFTYwhich saw rapid success on Billboard but collapsed following a contract dispute. Their legal battle stalled all promotions, eroded their fandom, and ultimately derailed their momentum. Some fear New Jeans they could follow a similar path if the conflict were to prolong.
It remains uncertain whether the two sides will be able to reconcile. If New Jeans proceeds with an appeal, the case will go to a higher court. Prolonged conflict only prolongs group inactivity.
One legal expert noted, “It was legally difficult for NewJeans to win and, considering the young age of the members, prolonged litigation is harmful. The court even suggested a settlement twice, but NewJeans maintained a firm position citing a ‘complete breakdown of trust,’ so no settlement was reached.”
Industry professionals believe that quick resolution is crucial for more than just problems New Jeans and ADOR, but for K-pop as a whole. ADOR is struggling without alternative revenue streams and New Jeans they risk losing ground as leading icons of Gen Z.
“The longer this situation goes on, the more difficult it will be to recover from the damage to the brand and the loss of market trust,” an entertainment insider said. “Ultimately, both the company and the artists bear the costs, so a realistic compromise is essential.”
Sources: Daum
