NewJeans Speaks Out: Contract Termination Rumors Loom as HYBE Conflict Deepens

NewJeans publicly demands Min Hee-jin’s reinstatement as CEO, giving HYBE a two-week deadline.

On September 11th, NewJeans held a surprise live broadcast titled “What NewJeans Wants to Say,” claiming unfair treatment by HYBE.

Hanni, in particular, shared an incident where she overheard some “ignore” her by another group’s manager within the HYBE building. She expressed her frustration, stating that she informed the new ADOR CEO, Kim Joo-young, about this but received a dismissive response, making her feel like a liar. This highlights the issue of bullying and ostracization within the company.

They also mentioned that they learned about Min Hee-jin’s dismissal through news articles on the day of her expected return, leading them to believe that HYBE doesn’t respect them at all. Minji expressed their desire for the original ADOR, where Min Hee-jin served as both the CEO and producer. She emphasized that this request aims to maintain a good relationship with HYBE, urging Bang Si-hyuk and HYBE to make a wise decision by reinstating Min by the 25th of this month.

Since the conflict between Min Hee-jin and HYBE surfaced in April, NewJeans members have consistently sided with Min, who they consider their ‘NewJeans mom.’ They submitted a petition opposing her dismissal and continued to express their support and affection publicly.

Although they emphasized that this surprise live broadcast was prepared independently and unrelated to Min Hee-jin, the industry views it as a move considering potential legal action against HYBE. Given that all members are between the ages of 16 and 20, such statements would be difficult without legal counsel.

The specific mention of a two-week deadline, ‘the 25th,’ has drawn attention. Typically, artists requesting contract termination give the company two weeks to address their grievances. Regardless of whether it’s appropriate for artists to demand the reinstatement of a dismissed CEO, NewJeans’ statement can be interpreted as an intention to request contract termination if Min isn’t reinstated within two weeks.

This pattern was also observed in the FIFTY FIFTY case, where the court dismissed their injunction request, citing the lack of a 14-day notice period as one of the reasons.

NewJeans’ claim of systematic neglect within HYBE can also be seen as building a case for a breakdown of trust. With a strong fanbase, their direct message resonates with fans. One NewJeans fan even filed a complaint with the Ministry of Employment and Labor, requesting an investigation into the alleged bullying within HYBE.

Consequently, several scenarios are being considered for NewJeans’ future: (1) remaining with HYBE, (2) requesting contract termination based on their ultimatum, or (3) terminating the contract after paying a penalty.

However, considering their contract duration, it’s estimated that they would face a substantial penalty for early termination. The Fair Trade Commission’s standard contract allows a maximum contract period of seven years for singers.

NewJeans, who debuted in July 2022, likely has about five years remaining on their contract.

The standard contract sets the penalty as the average monthly sales of the past two years multiplied by the remaining contract months. ADOR, with NewJeans as its sole artist, reported sales of 18.6 billion won in 2022 and 110.3 billion won last year. While the exact terms of NewJeans’ contract are unknown, a rough estimate based on this information suggests a penalty exceeding 300 billion won. Previously, during HYBE’s audit, private text message conversations between Min Hee-jin and ADOR executives revealed their estimation of the contract termination cost to be over 600 billion won.

Some believe that with their rapid growth and 100 billion won in sales last year, NewJeans might find external investors willing to cover the penalty.

Meanwhile, Min Hee-jin was dismissed as ADOR’s CEO on August 27th. Her side issued a statement protesting the decision, calling it a breach of the shareholder agreement and a violation of the court’s decision.

Image Credits: ADOR

Video Credits: 주주