HYBE Hit With Another Government Investigation, Linked To NewJeans 

HYBE and ADOR are facing another government investigation, this time from South Korea’s Fair Trade Commission (KFTC).

HYBE has previously been raided by police in connection with IPO fraud allegations involving Bang Si Hyuk. | News1

On August 6, attorney Jung Jong Chae announced that his law firm had filed a complaint with the KFTC on behalf of NewJeans member Danielle.

According to the lawyer, the commission has officially begun investigating HYBE and ADOR over allegations of abuse of market dominance and unfair trade practices.

| OMEGA

The complaint argues that Danielle was treated differently from the other NewJeans members despite being involved in the same contract dispute. The filing claims that ADOR terminated only Danielle’s contract and pursued hundreds of billions of won in penalties and damages against her.

Jung alleged that the lawsuit was not simply about recovering financial losses. Instead, he claimed it was intended to permanently remove Danielle from the K-Pop industry while sending a warning to other artists who may consider challenging their agencies.

| ADOR

The complaint also argues that HYBE holds a dominant position in the K-Pop industry and that its actions could have broader competitive effects in the market. According to the filing, imposing such large penalties on artists could discourage them from moving between agencies and make it harder for smaller companies to recruit talent.

| Billboard

Another major point raised in the complaint concerns the standard contract used by entertainment agencies. Jung argued that the penalty clauses are unfair because they are calculated based on revenue rather than actual profit, which can result in damages that far exceed an agency’s actual losses.

Lastly, the lawyer stated that Danielle’s ultimate goal is to return to activities as part of NewJeans alongside Minji, Hanni, Haerin, and Hyein.