A South Korean court has ruled against the K-pop group NewJeans, preventing them from pursuing independent activities amid an ongoing legal dispute with their record label, ADOR.
Background of the Dispute
The conflict began in November 2024 when NewJeans announced the termination of their exclusive contract with ADOR, citing alleged breaches, including inadequate artist protection and internal management issues. The group expressed a desire to continue their careers independently and adopted the new name NJZ.
Court’s Injunction
In response to ADOR’s request, the Seoul Central District Court issued an injunction prohibiting NJZ from engaging in independent music and commercial activities without the label’s consent. The court stated that the evidence provided by NJZ did not sufficiently demonstrate that ADOR had violated essential contractual obligations or that the trust between the parties had irreparably broken down.
Financial Implications
Legal experts suggest that if NJZ is found to have breached their contract, they could face penalties up to 620 billion won (approximately $420 million). The dispute has also impacted ADOR’s parent company, HYBE Corporation, which experienced a significant drop in market capitalization following NJZ’s contract termination announcement.
Future Proceedings
NJZ has expressed respect for the court’s decision but maintains that the trust relationship with ADOR has been compromised. They plan to challenge the ruling, with further legal hearings scheduled. The outcome of this dispute could have significant implications for artist-label relationships within the K-pop industry.
