Five things to know about top K-pop group NewJeans’ shocking divorce from the agency

SEOUL (AFP): Chart group NewJeans shocked the K-pop world with their announcement that they are leaving their label ADOR due to what they described as “abuse”.

Here are five things you need to know: what this means for the multi-billion dollar industry and what’s next for the group.

– Who are they? –

NewJeans made its debut in 2022 and has five members – Haerin, Danielle, Hanni, Minji and Hyein – who are all under 20.

Together with BTS, they are one of the most successful K-pop groups of the South Korean entertainment powerhouse HYBE.

The group has topped global charts, including the Billboard 200, and last year broke the Guinness World Record for “Fastest K-pop Act to Reach 1 Billion Streams on Spotify.”

NewJeans’ producer is Min Hee-jin, a creative director who is widely regarded as one of the most successful in the K-pop scene and has worked with the likes of Girls’ Generation, EXO and SHINee.

– What happened? –

The story started in April, when HYBE tried to push out Min, who was then CEO of subsidiary ADOR.

The company accused the producer of breach of trust, but the move sparked an extended legal and PR battle with Min in turn accusing HYBE of copying its star-making formula for a rival girl band.

After being fired as CEO in August, Min resigned from ADOR’s board last week, citing a “hellish dispute with HYBE” and vowing legal action against the company.

The group expressed solidarity with Min and sent an ultimatum to HYBE demanding her reinstatement.

In the throes of the crisis, Hanni, one of the group’s members, gave tearful testimony to South Korean lawmakers overseeing workplace conditions and safety, saying they had been victims of harassment at the workplace.

On Thursday evening, the group finally announced the end of their contract with ADOR during a late-night press conference.

But ADOR insisted that their contract “remains in full force and effect” and therefore they “respectfully request that the group continues to collaborate with ADOR on upcoming activities, as has been the practice to date.”

– Is this an isolated case in K-pop?

“Historically, the contractual relationship between agencies and group members has repeatedly caused problems over the years,” Lee Dong-yeon, a professor at the Korea National University of Arts, told AFP.

In 2009, iconic boy band TVXQ shocked the industry with legal action against their label over their 13-year contract which they compared to a “slave contract” due to excessive work hours and unfair profit sharing.

Recently, in 2023, some members of FIFTY FIFTY attempted to suspend their contracts, citing a lack of financial transparency and neglect of healthcare.

Kim Jin-gak, a professor at Sungshin Women’s University, said the NewJeans case “appears to have arisen because the parent company tried to exert too much control.”

“While it may not have a significant impact on the entire K-pop industry, I think it could lead to some changes in the way K-pop activities are managed.”

– What’s next? –

The legal battle will continue and “the process is expected to be lengthy,” said lawyer Kim Tae-yeon.

“Given the added complexity in this case, if there is a trial, it could take two to three years or more,” she added.

The biggest legal issue would be whether or not the girl band would have to pay a contractual fine, which experts say could reach 620 billion won ($440 million).

“If the court finds that the company is guilty, as NewJeans claims, and that NewJeans did nothing wrong, they can defend themselves against any penalties,” Kim said.

HYBE’s share price fell five percent in early trading on Friday.

However, the market has already priced in the incident and the fines will “result in an insignificant financial loss for HYBE,” Lim Soo-jin, an analyst at Daishin Securities, told AFP.

– Will NewJeans continue in the meantime? –

For the time being, NewJeans no longer exists. Or at least the name may have to go because the label has exclusive rights to it.

But Danielle, one of the group members, said they will continue to fight to continue making music together.

“We really want to be able to release new music for Bunnies as soon as possible next year… and we really hope we get the chance to meet you from all over the world,” she said, referring to the name for their fandom.

“Regardless of our name, remember that NewJeans never dies.” -AFP