Judge highlights unique nature of case, says ‘loss of trust’ requires careful interpretation
The first court hearing in the contractual dispute between K-pop girl group NewJeans and its agency Ador ended without progress on Thursday, with the two sides remaining far apart on the possibility of reaching a settlement. The next court hearing is scheduled for June 5.
The Seoul Central District Court held the initial hearing for Ador’s lawsuit seeking confirmation of the validity of its exclusive contract with NewJeans. Only legal representatives were present, as no one from the band attended.
Ador argued that the group's unilateral termination of contract in November 2024 lacked both procedural and legal grounds and that their deal signed in April 2022 remains valid.
In contrast, NewJeans' side asserted that trust between the parties had irreparably collapsed, particularly after the removal of former Ador CEO Min Hee-jin, a key figure credited with the group’s success.
The judge asked whether the parties were open to a settlement.
While an Ador lawyer expressed the willingness to pursue an agreement, NewJeans’ legal representative replied that the group was not in a mental state to consider a settlement at this time.
The two sides also clashed over how to describe Min’s exit from the company in November.
Ador maintained that Min voluntarily resigned after refusing to work under a new CEO, while NewJeans' side argued she was ousted and replaced by someone under direct control of Hybe, Ador’s parent company, fundamentally changing the agency’s nature.
“The defendants argue that they cannot carry on with their careers without Min, but it makes no sense to say NewJeans cannot exist without her,” Ador’s attorney said. “Ador is a subsidiary of Hybe, the No. 1 K-pop agency in the industry, and is capable of finding new producers. In fact, NewJeans successfully performed in Hong Kong recently without Min’s involvement.”
Last month, the group performed under a new name, NJZ, at ComplexCon Hong Kong, an independent decision made without Ador after the girl group left the agency. However, after the court granted Ador’s injunction on March 21 to preserve its status as the group’s agency and to block any external advertising contracts until the final judgement on merit, the group performed under Ador's management in Hong Kong.
NewJeans’ legal team argued that, even setting aside Min’s case, Hybe failed to come up with any alternative for the band over the six to seven months following its dispute with Min that started about a year ago. They claimed the issue was not just Min’s dismissal, but that communication with the group had also broken down since then.
“When it comes to a corporation, replacing an executive can fundamentally change the nature of the entity. With Min ousted and a new management taking over under Hybe’s direction, Ador is no longer the same company it once was,” the NewJeans’ lawyer said. “We ask the court to determine whether it is right for the defendants to continue with the current Ador, which is no longer the agency they once trusted.”
Ador countered that Min was not forced out, but left of her own accord, refusing to continue if she was not reinstated as CEO.
“Even after the leadership change, Ador offered to let Min continue her production work, but she refused. Then, the members declared termination of the contract,” Ador’s lawyer said. “The door for communication was closed.”
Presiding Judge Jeong Hoe-il acknowledged the case’s uniqueness, noting that it represents more complex issues than typical contractual disputes.
“I’ve handled cases where an idol comes asking for the contract to be terminated after never receiving a payment, but this case is quite different. The concept of a ‘loss of trust’ is abstract, and I will need to carefully consider how that should be interpreted," Jeong remarked.
jaaykim@heraldcorp.com
