S Poddar
K-pop girl group NewJeans has parted ways with their agency, Ador, amid allegations of mistreatment and manipulation. The five-member girl group, which has made waves in the K-pop scene since its debut in 2022, revealed this during a late-Thursday press conference.
However, the case is not that simple. Ador, a subsidiary of the powerful Hybe label, has argued that its contract with NewJeans is still valid, stating that the agency has not breached any terms of the contract. The case between the group and their agency is part of a larger, ongoing battle between Min Hee-Jin, NewJeans’ former producer, and Hybe’s chairman, Bang Si-hyuk, which has been the subject of much discussion in South Korean media.
The tension within the group was made public when Hanni, one of NewJeans’ members, spoke out about her experience of workplace harassment while working with the agency. She added that the working environment was not respectful, saying, “This is not the kind of work ethic we respect and not one we want to be a part of, and to continue working under a company with no intention of protecting NewJeans would only do us harm.” Hanni further added that the harassment wasn’t limited to members but to staff too. She said that “there were deliberate miscommunications and manipulations in several areas,” which she said had contributed to the deteriorating atmosphere in the agency.
The group has accused the agency of doing wrong. In a statement, the agency claimed that its contract with NewJeans is still valid. They argued that the group does not have valid grounds for termination because “A unilateral claim that trust has been broken does not constitute valid grounds for termination of a contract.” They were disappointed that the group managed the situation and it came at a time when they could not respond to the demands presented by NewJeans.
One of the group’s key demands was to reinstate Min Hee-Jin, who left Ador in August. Min was accused of trying to break off from Hybe and take NewJeans with her, which would have allowed the group to operate as its own entity. She has denied these accusations, but tensions between Min and Hybe have only deepened, with Min also accusing Hybe of launching another girl group, Illit, that she claims is a direct copy of NewJeans’ style and music.
In mid-November, NewJeans issued a formal legal notice to Ador, demanding that the agency resolve what they saw as breaches in their exclusive contracts within 14 days. The group also demanded an apology for a comment reportedly made by an executive at another subsidiary of Hybe, Belift Lab, where the executive is alleged to have accused the company of workplace bullying. Failure to address these issues will lead to the termination of the contracts, they warned. In light of this, the group declared that they will continue honoring their commitments under the existing contract until such time a resolution is reached, even as they warn their fans that they might not be able to continue using the NewJeans name if the contract ends.
The group’s contract is to run until 2029, with a unilateral termination clause on breach of obligation by either party. In light of conflicting claims, however, it is expected that the case would be resolved by the courts. A judge will have to decide if the contract can be terminated and whether there are damages due to either party.
The heart of the issue is the huge financial penalty NewJeans might incur if they break the contract early. Media reports in October claimed that the K-pop group could be forced to pay as much as 300 billion South Korean Won (£170 million) for an early contract termination. This has sparked some backlash towards the members, like Haerin, who are adamant that the idea of keeping the group liable was not accepted. “We never break any rules,” Haerin said in a statement. “We try our best to do only good things; they make mistakes. Hybe and Ador are guilty.”
Ador, on the other hand, regretted the decision of the group and said that they have made several attempts to meet with the members to resolve the issues. However, according to the agency, they had not been able to make the group talk. The agency also requested NewJeans to continue working with them for the upcoming activities.
For more than a year now, drama around NewJeans has seen a series of public audits, emotional distress accusations, and even allegations of workplace harassment. However, one of the striking moments came when 20-year-old Hanni testified to the South Korean National Assembly’s Labour Committee on alleged mistreatment against herself and the bandmates in October. During her testimony, she shared her growing belief that the company had intentionally undermined them, adding, “I came to the realisation that this wasn’t just a feeling. I was honestly convinced that the company hated us.”
The drama has left a mark as the events continue to unravel, even affecting the stock market performance of Hybe. On the day following the press conference, shares of Hybe fell 4% in Seoul trading. It means that the row has affected people outside NewJeans members.
Since debut, NewJeans quickly turn out to be one of Hybe’s best performing groups in the K-pop world. Alongside K-pop giants BTS, they continue making it up for K-pop globally and within Hybe. This group was last ranked among the top eight best-selling artists around the world during the last year. For this reason, the NewJeans group won an award nomination for the 2024 MTV Awards, which puts them further solidly into the K-pop industry.
Now, the future of the successful group hangs in the balance as they navigate this intricate and emotional conflict with their agency. The next steps from there could affect both NewJeans and K-pop overall, where similar issues, specifically issues regarding contract disputes and mistreatment, have become the point of concern in the past years.
