The positions of Adore and NewJeans regarding the validity of the exclusive contract dispute have not been narrowed down. In the meantime, the court has prioritized mediation procedures.
On the 24th, the 41st Civil Division of the Seoul Central District Court held the third hearing for the lawsuit filed by Adore against NewJeans to confirm the validity of the exclusive contract. Both parties' legal representatives attended, and the high interest was evidenced by the presence of some fans, including the press.
On this day, both sides began their arguments through a presentation. First, the legal representative of Adore, the plaintiff, argued on two topics: 'large-scale investment in trainees' and 'change of heart after becoming successful entertainers.'
Adore stated, “The company staff spared no expense in supporting the defendant (NewJeans) with 7 billion won for their success,” and pointed out, “This is an incident where the members left the agency just two years after their debut.” They emphasized, “Unilateral termination of a contract without meeting conditions is a clear violation of exclusive contracts in the K-pop industry. NewJeans must continue as Adore's artists for a virtuous cycle in K-pop; otherwise, the structure will collapse.”
Adore claimed that the members have executed all decisions under Min Hee-jin's instructions. They even stated that the complaint titled 'Mothers' Protest Letter,' which was conveyed to Hive by the members' parents, was meticulously directed by Min Hee-jin. Adore emphasized, “Min Hee-jin was eager to create a pretext for the destruction of the exclusive contract using the defendant and the parents.”
Adore revealed that former Adore CEO Min Hee-jin had been planning to 'take NewJeans away' since March 2021 by disclosing chat messages. The defendant's side pointed out, “We were concerned about the public presentation in court, but they are disregarding that and making it public. This is a deliberately calculated act,” but the court did not find it problematic as the content was from the past.
The core argument from Adore was 'creating a pretext for the members and Min Hee-jin to leave Adore.' They mentioned that as an agency, they had successfully developed the defendant into a global star and that the revenue settlement of 5 billion won per member was well executed, emphasizing that there were no grounds for termination.
They pointed out that the complaints raised by NewJeans and Min Hee-jin regarding all situations before and after the exclusive contract only serve as evidence that there are no decisive grounds for termination.
Adore raised their voices, stating that it is not a “trust relationship between friends or lovers,” emphasizing that the trust that forms the foundation of the exclusive contract cannot be destroyed, reiterating the lack of grounds for termination.
Regarding the allegations of copying NewJeans by the group ILY:IT, they stated that this cannot be a reason for 'termination of the exclusive contract' and called it 'creating a pretext.'
Adore stated, “As long as the exclusive contract with the members is maintained, optimal entertainment activities will be possible, and we can avoid social criticism, penalties, and damages,” adding, “The company is actually preparing for the members' comeback.” They explained the necessity of maintaining the contract, stating that “the termination of the exclusive contract would cause fatal damage to the K-pop industry and there would be no future production investment. This leads to the collapse of K-pop.”
The defendant's side began their argument regarding the current situation, stating, “This started with Hive's audit and attempts to dismiss Min Hee-jin, aiming to expel her from Adore.”
They continued, “The Adore that the members relied on no longer exists. The current Adore is not the one that Min Hee-jin was part of, which cherished and fully supported the members,” claiming, “The biggest problem is the lack of trust.”
Additionally, they claimed that Hive's assertion of Min Hee-jin's 'attempt to seize control of Adore' is a false narrative that sparked the dispute. They viewed this incident as one where the members suffered the most due to the collapse of the management system, which has become a comprehensive issue.
The defendant's side emphasized that Hive, led by Bang Si-hyuk, had no successful cases with girl groups, stating, “After hitting it big with NewJeans, they were wary on one side, and Min Hee-jin was a source of annoyance.” They pointed out, “Even if Min Hee-jin is removed, there should have been a plan for what to do with the members afterward, but nothing was prepared.”
The defendant's side stressed that Min Hee-jin is like a mother to NewJeans, saying, “How can you enter a company without a mother and work? That place (Hive) is completely different from the past, and if you go in, you will face persecution, which they know better than anyone.”
They also expressed that Adore has not taken any measures for the defendants. The defendant's side stated, “Since Hive operates under a multi-label system, they do not get involved much in the incidents that occur within it, and follow-up measures have not been well implemented. The members have borne the brunt of the damage.”
In conclusion, the defendant's side stated, “This incident started with Hive's erroneous framing. Trust has been shattered, and this is a clear incident that cannot be reversed.”
The court designated the mediation date for August 14 and announced that it would be held privately. They requested that a representative from among the members attend on that date.
NewJeans held an emergency press conference last November, declaring the termination of their exclusive contract with Adore due to a breakdown in trust. They subsequently announced their new activity name 'NJZ' and embarked on independent activities.
In response, Adore filed a lawsuit against the NewJeans members to confirm the validity of the exclusive contract and sought a prohibitory injunction regarding the preservation of the agency's status and the signing of advertising contracts. The court accepted the injunction request and granted it in full, effectively blocking NewJeans' independent activities and halting their activities.
The members immediately filed an objection, but this was also dismissed. They subsequently appealed to the high court, but it was again dismissed, and they did not file a further appeal, resulting in the confirmation of the injunction decision.
Meanwhile, the 52nd division of the Seoul Central District Court accepted Adore's request for indirect enforcement. The indirect enforcement fee is a fine imposed for failing to comply with a court decision, and the court ruled that if NewJeans conducts independent activities without Adore, they must compensate 1 billion won per person. If the entire group conducts independent activities, they must pay a total of 5 billion won to Adore.
[Ji Seung-hoon, Star Today Reporter]
