K-pop girl group NewJeans finds itself at a crossroads after their management agency, Ador, a subsidiary of Hybe, officially rejected the group’s request to reinstate Min Hee-jin as CEO. In a statement released Wednesday, Ador reiterated its commitment to Hybe's policy of separating management and production roles but confirmed that Min will continue to serve as the group’s producer and an internal director.
"The board has resolved to reappoint Min Hee-jin as an internal director during an extraordinary shareholders' meeting," Ador stated. "However, we cannot accept the request for her reinstatement as CEO at this time. Min Hee-jin's authority as the producer of NewJeans remains intact, and we are open to further discussions on her role."
Despite Ador’s refusal, Min immediately issued a press release calling for her reinstatement, underscoring that her leadership as CEO is essential for the continued success and development of NewJeans.
This decision leaves NewJeans with few viable options. The group now faces three possible courses of action: remain at Hybe under the new leadership of CEO Kim Ju-young, pursue legal action on the grounds of contract violations, or pay a significant penalty to terminate their contract and potentially reunite with Min outside of Ador.
On September 11, NewJeans made their position clear, issuing a public statement: "We want Ador to return to its original state, with (former) CEO Min Hee-jin overseeing both management and production. We believe this is the best way to coexist peacefully with Hybe without conflict." This move is seen as a potential precursor to legal action. Under Article 15 of the Standard Contract for Popular Culture and Arts Professionals, if a breach of contract is identified, either party may request corrective action within 14 days. If unresolved, the contract can be terminated, and damages may be pursued.
NewJeans, Courtesy of Ador
NewJeans gave Hybe until September 25 to respond, by this provision. However, legal experts suggest that the case may be more complex. According to Lee Jae-Kyung, a professor at Konkuk University Law School and president of the Korea Entertainment Law Society, basing a legal case solely on Min’s dismissal may not be enough to justify contract termination.
"NewJeans might argue for suspension of the contract's validity based on a breakdown in trust with Ador," Lee explained. "However, claiming that Ador violated fundamental contractual obligations, such as payment settlements, would be difficult. Interfering with management decisions, such as requesting Min's reinstatement, may not hold up in court."
Another potential option for NewJeans is to terminate their contract by paying a hefty penalty. Estimates for this penalty range between 300 billion won ($225.8 million) and 500 billion won, though the exact figure remains undisclosed due to the confidentiality of NewJeans' contract details. The penalty would likely be based on Ador’s revenue over the past two years, estimated at around 190 billion won, and the remaining five years in the group’s contract.
Music critic Lim Hee-yun, however, believes paying the penalty could be a practical solution for the group if they remain firm in their request for Min's reinstatement. "Similar to how G-Dragon joined a lesser-known company, a wealthy or unconventional entity could step in to take on NewJeans," Lim commented on Wednesday.
As NewJeans contemplates their next steps, the outcome of this dispute will not only shape the group’s future but could also set a precedent in the K-pop industry regarding artist management and contractual relationships.
Sayart / ReaA JUNG, queen7203@gmail.com
NewJeans, Courtesy of Ador
K-pop girl group NewJeans finds itself at a crossroads after their management agency, Ador, a subsidiary of Hybe, officially rejected the group’s request to reinstate Min Hee-jin as CEO. In a statement released Wednesday, Ador reiterated its commitment to Hybe's policy of separating management and production roles but confirmed that Min will continue to serve as the group’s producer and an internal director.
"The board has resolved to reappoint Min Hee-jin as an internal director during an extraordinary shareholders' meeting," Ador stated. "However, we cannot accept the request for her reinstatement as CEO at this time. Min Hee-jin's authority as the producer of NewJeans remains intact, and we are open to further discussions on her role."
Despite Ador’s refusal, Min immediately issued a press release calling for her reinstatement, underscoring that her leadership as CEO is essential for the continued success and development of NewJeans.
This decision leaves NewJeans with few viable options. The group now faces three possible courses of action: remain at Hybe under the new leadership of CEO Kim Ju-young, pursue legal action on the grounds of contract violations, or pay a significant penalty to terminate their contract and potentially reunite with Min outside of Ador.
On September 11, NewJeans made their position clear, issuing a public statement: "We want Ador to return to its original state, with (former) CEO Min Hee-jin overseeing both management and production. We believe this is the best way to coexist peacefully with Hybe without conflict." This move is seen as a potential precursor to legal action. Under Article 15 of the Standard Contract for Popular Culture and Arts Professionals, if a breach of contract is identified, either party may request corrective action within 14 days. If unresolved, the contract can be terminated, and damages may be pursued.
NewJeans, Courtesy of Ador
NewJeans gave Hybe until September 25 to respond, by this provision. However, legal experts suggest that the case may be more complex. According to Lee Jae-Kyung, a professor at Konkuk University Law School and president of the Korea Entertainment Law Society, basing a legal case solely on Min’s dismissal may not be enough to justify contract termination.
"NewJeans might argue for suspension of the contract's validity based on a breakdown in trust with Ador," Lee explained. "However, claiming that Ador violated fundamental contractual obligations, such as payment settlements, would be difficult. Interfering with management decisions, such as requesting Min's reinstatement, may not hold up in court."
Another potential option for NewJeans is to terminate their contract by paying a hefty penalty. Estimates for this penalty range between 300 billion won ($225.8 million) and 500 billion won, though the exact figure remains undisclosed due to the confidentiality of NewJeans' contract details. The penalty would likely be based on Ador’s revenue over the past two years, estimated at around 190 billion won, and the remaining five years in the group’s contract.
Music critic Lim Hee-yun, however, believes paying the penalty could be a practical solution for the group if they remain firm in their request for Min's reinstatement. "Similar to how G-Dragon joined a lesser-known company, a wealthy or unconventional entity could step in to take on NewJeans," Lim commented on Wednesday.
As NewJeans contemplates their next steps, the outcome of this dispute will not only shape the group’s future but could also set a precedent in the K-pop industry regarding artist management and contractual relationships.
