“It is ADOR and HYBE who should be paying the penalties”- NewJeans addresses rumors surrounding penalty fees regarding exclusive contract violation

On November 28, 2024, NewJeans officially announced the early termination of their exclusive contract with ADOR, a subsidiary of HYBE. The announcement was made during a press conference, where all five members—Minji, Hanni, Danielle, Haerin, and Hyein—cited alleged unresolved contractual violations as the reason behind their decision.

Member Minji stated at the press conference that their contract would be terminated starting on November 29 at 12 AM (KST).

This move follows weeks of speculation after the group issued a legal notice on November 14, demanding that ADOR address alleged breaches in their agreement, including issues with creative control and management transparency. The notice reportedly outlined a 14-day window for ADOR to respond, which the agency allegedly failed to meet.

During the conference, the group said that their decision to terminate the contract didn't violate the agreement. Stressing that they don't "need to pay any penalty fees." Group member Haerin said:

"I’ve read several articles about penalties. But we have not violated our exclusive contract and have given our best in all our activities, so we do not need to pay any penalty fees. Rather, it is ADOR and HYBE who should be paying the penalties"

According to BBC's September 2024 article, it's speculated that the girl group would have to pay over 300 billion KRW (almost $214.9 million) if they terminate their contract with HYBE and ADOR before their term completion. The group has three more years remaining on their contract.

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NewJeans states continuing with their activities upon leaving ADOR

At the press conference, NewJeans assured fans that the group intends to continue its music career and retain its brand name. However, ADOR countered with a statement, asserting that the contracts remain valid. ADOR said:

"Despite multiple requests for meetings with NewJeans members, our efforts have not been successful. We hope the members will now be willing to engage in an open and candid discussion. ADOR is committed to fully supporting NewJeans in their activities and will continue to make every effort to assist in their growth as global artists."

Reportedly, the decision to terminate their contract prematurely could lead to legal battles, financial penalties, and disrupted schedules. However, it remains to be seen.

Known for hits like Super Shy and ETA, the group became a global phenomenon, setting records on streaming platforms and dominating charts worldwide. Fans, collectively known as "Bunnies," have expressed overwhelming support online.

Meanwhile, NewJeans member Danielle stated at the press conference that they would proceed "freely" to continue their scheduled activities.

"Us five will no longer be artist under the ADOR label. Upon leaving ADOR, we will proceed to continue on freely with the activities we want to do. We will proceed on the schedules that we have contracts with already."

Danielle continued:

"We will also continue on all the advertisements we already have contracts with. We want to thank all the advertisement managements who have continually supported us through this. We also want to say that you all don’t need to worry."

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In other news, Min Hee-jin resigned from her role as internal director at ADOR eight days ago on November 20, 2024. NewJeans demanded, among other things, that Min Hee-jin be reinstated as CEO, a position she was removed from in August 2024.