NewJeans Loses Contract Lawsuit Against ADOR, Court Reaffirms Legitimacy of Min Hee-jin’s Dismissal

Court Rules in ADOR’s Favor in Exclusive Contract Case
“Min Hee-jin’s Dismissal Not Grounds for Contract Termination”
Court Notes: “Min’s Actions Were Aimed at Secession, Not Protecting NewJeans”

A Seoul court has ruled that the exclusive contract between K-pop group NewJeans and its agency ADOR remains valid, rejecting the group’s claim that the dismissal of former CEO Min Hee-jin irreparably damaged the relationship of trust between the two sides. The court concluded that the alleged issues raised by NewJeans—such as album “dumping” and management breaches—were not the result of ADOR’s serious violations, but rather part of Min’s premeditated campaign to prepare for her separation from parent company HYBE. The ruling effectively strengthens HYBE’s position, which had weakened after Min was cleared of embezzlement charges, and signals that the court recognizes her efforts to detach NewJeans as an actionable attempt, reinforcing the legitimacy of her dismissal.

Court Rules Exclusive Contract Valid

On October 30, the Seoul Central District Court’s Civil Division 41 (Chief Judge Jung Hoe-il) ruled in favor of ADOR in a suit it filed against the five members of NewJeans to confirm the validity of their exclusive contract. NewJeans had argued that Min’s dismissal constituted a breach of contract and that the breakdown of trust justified termination, but the court rejected all claims.

“The mere fact that Min was dismissed as ADOR’s CEO does not mean there was a management vacuum or that ADOR lacked the ability or plans to continue managing NewJeans,” the court said. “There is no provision in the exclusive contract that requires Min to remain in charge of the group.” The court further noted, “Even after her dismissal, Min could have continued her producer duties as an outside director; it was not necessary for her to hold the CEO position,” adding that “she voluntarily resigned as an internal director on November 20 of last year.”

Regarding the alleged breaches by ADOR, the court determined that they were “the result of Min’s preemptive efforts to generate negative public opinion toward HYBE by scrutinizing internal materials among HYBE, ADOR, and NewJeans.” It continued, “For artist management contracts signed before debut, like NewJeans’, significant investments are typically made under uncertain prospects, recoverable only upon success. Once a strong fandom is established, demanding creative control and rejecting reasonable management decisions cannot be seen as ‘forced activities’ or ‘violations of personality rights.’”

Court Upholds ADOR’s Injunction, Orders $7.2 Million Penalty Per Violation

NewJeans had declared its intent to leave ADOR at an emergency press conference on November 28 last year, citing unresolved grievances with the company and calling for Min’s reinstatement following her dismissal amid conflict with HYBE in August.

Soon after, the group announced a new name, NJZ, signaling plans for independent activity. ADOR responded by filing a lawsuit in December to confirm the contract’s validity, and in January sought an injunction to prevent the members from signing independent advertising contracts.

The court granted the injunction, prohibiting NewJeans members from pursuing independent activities. Their objections and appeals were both rejected, solidifying the ruling. The court further accepted ADOR’s request for indirect compulsory enforcement, ordering each member to pay $7.2 million per violation if they engaged in any independent activities.

As a result, NewJeans members are currently barred from any solo entertainment engagements—including performances, media appearances, or commercial deals—without ADOR’s consent, until the case is fully resolved. Although the court proposed mediation twice, both sides failed to reach an agreement. With NewJeans now deciding to appeal, the legal battle is expected to drag on.

Balance Tilts Toward HYBE as Dismissal Justification Strengthened

Industry and legal experts view this ruling as strengthening HYBE’s position in its ongoing dispute with Min, including the separate embezzlement-related case. Min was cleared of occupational breach of trust by police in July after a 15-month investigation, following HYBE’s 2024 complaint accusing her of attempting to seize control of ADOR.

The court had previously noted that Min sought ways to detach NewJeans from HYBE’s control—an act that undermined the integrity of the HYBE–ADOR–NewJeans structure. While police concluded that no crime was committed, as “attempted breach of trust” is not punishable without execution, the court’s finding effectively recharacterizes her actions as a concrete move toward separation.

The latest ruling directly contradicts arguments that Min’s dismissal was invalid simply because she was cleared of criminal charges. The court determined that her actions amounted to a deliberate attempt to create negative sentiment toward HYBE and remove NewJeans from its corporate framework—viewed as an act of organizational defection rather than internal disagreement. In doing so, the court reaffirmed the legitimacy of HYBE’s decision to dismiss her.