Hybe wins legal battle to keep K-pop girl group NewJeans, bolstering agency power

SEOUL – Hybe won a crucial court ruling affirming its management contract with K-pop act NewJeans, helping the South Korean company maintain control over one of its most valuable acts. 

The Seoul Central District Court on Oct 30 ruled that Hybe’s label Ador retains exclusive rights to manage the five-member girl group, rejecting NewJeans’ attempt to terminate the agreement and pursue independent activities.

The verdict cements Hybe’s position as the sole agency for NewJeans, ending nearly a year of disputes that roiled the country’s entertainment industry and captivated global fans. The girl group, which tried to rebrand their band identity, would not be able to pursue their own acts until 2029 unless they win in an appeal.

Shares in Hybe, which also manages K-pop boy band BTS, rose more than 7 per cent after the ruling. 

The court rejected most of NewJeans’ claims that trust with Ador had been broken, siding instead with the label. It said removing producer Min Hee-jin as Ador’s chief executive officer (CEO) did not create a management vacuum for the group, according to Yonhap News. 

The court found insufficient grounds to support the group’s key claims for terminating the contract – namely, Ms Min’s dismissal and Ador’s alleged failure to protect the members.

“It is difficult to conclude that Ador breached the exclusive contract solely on the grounds of Min Hee-jin’s dismissal,” the court said.

“The fact that Min was removed from her position as CEO does not in itself mean that a managerial vacuum was created or that Ador became incapable of fulfilling its contractual obligations,” the court added.

“The members’ personal trust in Min alone does not establish that guaranteeing her CEO position was a fundamental obligation under the exclusive contract.”

In its ruling, the court also cited that after Ms Min’s dismissal as CEO, Ador offered her a revised contract valid for the remainder of her term and requested she continue producing for NewJeans, but Ms Min instead voluntarily resigned from her position as an internal director.

NewJeans’ additional claims that the contract was breached due to the leak of the group’s trainee videos to local media and comments made by a Hybe official allegedly bullying member Hanni were also deemed insufficient grounds for termination.

The court further rejected the group and Min’s claim that her public campaign against Ador and Hybe was intended to protect NewJeans.

“It cannot be viewed that Min Hee-jin’s actions were for the purpose of safeguarding the group,” the court stated, adding that her efforts were not directly linked to the members’ independence.

NewJeans’ attorney said in a statement that the band plan to immediately appeal the ruling, asking the appellate court to comprehensively review the facts and legal grounds surrounding the contract dispute. 

While the members respect the court’s decision, the statement noted that it is impossible to resume normal activities under Ador due to a complete breakdown of trust, and expressed deep gratitude to fans for their patience and continued support.

The dispute began in November 2024, when NewJeans abruptly held a press conference announcing the termination of their exclusive contract with Ador. The label responded in December by filing a lawsuit seeking confirmation of contract validity.

Ador also requested injunctions to prevent the members from pursuing independent activities or entering advertisement contracts without the agency’s consent until the main lawsuit had concluded.

In February, the group announced plans to continue their activities under a new team name, NJZ, but the court accepted Ador’s injunction request, effectively halting the rebranded group’s operations.

Subsequent appeals and objections filed by the members were all dismissed.

In May, the court also approved Ador’s request for indirect compulsory execution, ruling that each NewJeans member must pay one billion won (S$910,000) to Ador per violation if they engage in entertainment activities without the company’s prior approval.

With their activities suspended under court order, NewJeans have since remained inactive.

According to South Korean media reports on Oct 24, Ms Min has officially launched a new entertainment company after she completed corporate registration for Ooak (One Of A Kind) on Oct 16.

The business scope includes artiste management, album production and distribution, and event planning, signalling her intent to resume full-scale creative and production activities. BLOOMBERG, THE KOREA HERALD/ASIA NEWS NETWORK