K-Pop label files lawsuit after NewJeans’ Aussie members Hanni and Danielle claim unfair treatment

A K-pop record label juggernaut has come out swinging after girl group NewJeans accused its team of mistreatment in an emergency press conference last week.

The group, which features Danielle from Newcastle and Hanni from Melbourne, announced plans to terminate their exclusive contract with ADOR, a sub-label under global powerhouse HYBE.

Hanni said at the conference in Seoul on November 28: “We have faced mistreatment not just toward us but also toward our staff, countless preventions and contradictions, deliberate miscommunication, and manipulation regarding multiple areas.”

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Members of South Korean K-Pop group NewJeans attend a press conference to declare contract termination with the band's label citing multiple reasons including unfair treatment, in Seoul, South Korea, Thursday, November 28. Credit: Ahn Young-joon/AP

Now, ADOR has filed a lawsuit with the Seoul Central District Court to “prevent any misunderstandings that the artists might have about the legality of the contract termination”.

In the official statement, first published by Soompi, the South Korean record label noted its decision to file the suit was “inevitable”.

“This inevitable decision was made to clarify to the artist and various stakeholders that the exclusive contracts between the agency and the artist cannot be lightly terminated based on one-sided claims,” the statement read.

“Above all, we seek clear judgement from the court to uphold the foundation of the K-pop industry, which has grown based on a healthy trust relationship between artists and agencies, and further, the foundation of the Korean popular culture industry.”

K-pop fans believe there’s a connection between NewJeans’ intention to terminate their contract and the public feud between ADOR and its former CEO, Min Hee-jin.

Min Hee-jin resigned from ADOR last month after a five-year tenure, citing irreconcilable differences with HYBE over creative autonomy and management practices.

Min Hee-jin was a pivotal figure in NewJeans’ creation and branding.

Elsewhere in its statement announcing the lawsuit, ADOR said it is “most concerned” that NewJeans’ decision will affect the growth of the K-pop industry.

“If this fundamental agreement is not upheld, the agency’s efforts, which have endured long periods of uncertainty and provided total trust in the form of investment, will be rendered powerless and irrecoverable.

“This means that systematic support, investment, and system enhancement in this industry can no longer be expected.”

NewJeans are widely known as one of the fastest-rising K-pop groups since their debut two years ago, the Get Up EP debuted at No. 1 on the US Billboard 200 in 2023.

However, the K-pop industry has been criticised for its exploitative power dynamics between labels and creatives. Because of this, NewJeans’ very public stance and push for creative autonomy is seen as a stark change from the alleged exploitative practices in the sector, including limited compensation and mental health neglect.

Local media has speculated that it could cost NewJeans approximately US$225 million to terminate their exclusive contract with ADOR.

ADOR’s full statement regarding NewJeans’ contract:

Hello, this is ADOR.

On December 3 KST, ADOR filed a lawsuit with the Seoul Central District Court to confirm the validity of the exclusive contract with our artist, NewJeans, in order to ensure its continued legal enforcement.

Although we did not wish to seek legal intervention with the artist, we decided that it was necessary to clarify to both the artist and all relevant stakeholders that our exclusive contract cannot be unilaterally terminated based solely on the claims of one side. Above all, the decision was made to protect the trust-based relationships that have driven the growth of the K-pop industry and to preserve the very foundation of the country’s pop culture. We aim to have this clearly established in court.

With a heavy heart, we believe it is important to clarify any misunderstanding that the exclusive contract with the artist has been lawfully terminated, as this could lead to the artist engaging in entertainment activities in violation of the existing agreement. We also wish to prevent any unexpected damage or confusion among industry professionals as a result.

K-pop has evolved through the collaboration between the artist’s talent and dedication, along with the company’s full investment and trust, grounded in expertise. In this industry full of uncertainties, it is inevitable for a company to provide support in the long term to ensure the growth of the artist. This proactive support is based on the mutual expectation and trust that both parties will grow together over time, forming the foundation of the exclusive contract that was mutually agreed upon.

If this fundamental and mutual agreement is not honoured, the company’s investment—based on long-term trust despite uncertainty—will be left unprotected and rendered ineffective. This would seriously hinder the continued development of K-pop, as the structured support, investment, and advancement of the system would be at risk. We are deeply concerned about the potential disruption of the growth cycle of K-pop, which has rapidly developed through many people’s hard work and dreams.

We remain committed to continuing our collaboration with NewJeans. Apart from seeking a judicial decision on the validity of the exclusive contract, we strongly believe that a sufficient and candid dialogue with the artist is essential. Despite multiple sincere requests from the label staff, we have yet to have the opportunity for direct communication with the artist. However, we will continue to make every effort to address any unnecessary misunderstandings between the artist and the company. We are committed to doing our best to ensure NewJeans can return to their loving fans with even better activities. We kindly ask for your continued support as both ADOR and the members of NewJeans work together to wisely overcome this situation.

Thank you.