NewJeans' Strategic Contract Termination Sparks Legal Debate and Public Controversy
ICARO Media Group
### NewJeans Terminates Contract with ADOR, Denies Liability for Termination Fee
On November 28, NewJeans held an urgent press conference to announce the early termination of their contract with ADOR. By November 29, the group no longer remained under the management of ADOR. At the press conference, Haerin, a member of NewJeans, emphasized that the group would not be paying any fees associated with the early termination of their contracts, asserting that the fault lay with ADOR and HYBE instead.
Haerin stated, "We've reviewed several articles about penalties, but we have not breached our exclusive contract. We've consistently worked hard and put in our best effort, so there's no reason for us to pay any penalties." The sentiment was echoed in a statement released by the group the following day. NewJeans accused ADOR of breaching the contractual obligations, which justified their decision to end the contract without the need for an injunction and underscored that they were not liable to pay any penalty fees.
The members declared, "The five of us hereby notify ADOR of the termination of our exclusive contracts since ADOR has failed to fulfill their contractual obligations and did not address these issues within the specified period. The notice of termination is in accordance with the contract and has been signed by all members. This termination will become effective immediately upon reaching ADOR on November 29, 2024, rendering the exclusive contract void from then on."
NewJeans have argued that due to ADOR's breach of contract, they have fully complied with their contractual duties and are thus not required to pay any penalties. This claim has stirred considerable discussion online, with opinions divided on the legality and wisdom of their approach. Some netizens have labeled the group's decision as impulsive and questioned their entitlement.
Legal experts in South Korea, including former judge Lee Hyung Gon, have largely supported NewJeans' stance. They argue that the group's decision to terminate the contract without seeking a provisional injunction was a strategic move. Typically, entertainers apply for provisional injunctions to end exclusive contracts, a process that restricts their activities until a court's ruling. However, by announcing their termination sans litigation, NewJeans has shifted the onus onto ADOR to file a lawsuit, a method Lee Hyung Gon described as "smart."
Nonetheless, NewJeans' unconventional approach continues to generate debate, with mixed reactions from the public regarding the group's legal and strategic decisions.