ADOR and NewJeans Exclusive Contract Dispute to be Held in Closed Mediation Today... Will Members Attend?

A mediation hearing related to the exclusive contract dispute between the girl group NewJeans and entertainment agency ADOR will take place today (the 14th). While the mediation hearing will be held in private, attention is focused on whether the members of NewJeans will attend the court.

The 41st Civil Conciliation Division of the Seoul Central District Court (Presiding Judge Jung Feil) will conduct direct mediation today regarding the exclusive contract validity confirmation lawsuit filed by ADOR against the five members of NewJeans. The proceedings will be held in private. If the parties fail to reach an agreement through mediation, a judgment will be rendered in October.

Prior to this, the court held the third hearing for ADOR's exclusive contract validity confirmation lawsuit on the 24th of last month. During the hearing, ADOR argued that the grounds for terminating the exclusive contract had not been established, while NewJeans countered that the breakdown of trust between ADOR and the members alone constituted grounds for termination, maintaining their previous stance.

At the time, ADOR's legal representative stated, “The essence of this case is ultimately that the trainees changed their minds after becoming successful as entertainers,” and “HYBE provided 21 billion won in support for the defendant,” adding, “Ultimately, the defendant is shifting the risk of failure onto the entertainment agency while the entertainer reaps all the benefits—that is the essence of the exclusive contract termination the defendant is claiming.”

Additionally, they emphasized that “the core obligations of an exclusive contract are providing opportunities for entertainment activities and settling revenue, but the defendant has become a global star and received settlement payments of over 5 billion won per person,” and that “the trust relationship underlying an exclusive contract refers to a business partnership, not a friendship or romantic relationship. The trust relationship has not been destroyed.”

However, the NewJeans side countered, “The current ADOR is not the same as the past ADOR. After ousting Min Hye-jin on the grounds of ‘usurping management rights’ and replacing her with HYBE executives, the ADOR that the defendant trusted and relied on when entering into the exclusive contract no longer exists.” They further argued, “The defendants have not only lost trust in the plaintiff through the litigation process but also fear the plaintiff. Just seeing the company building causes their hearts to race.”

Since their positions remain completely unyielding, the court set today (the 14th) as a closed mediation date and attempted direct mediation. Additionally, while setting up mediation, the court also requested the attendance of the members of NewJeans, who are parties to the lawsuit, and there is significant interest in whether the members will attend on this day. If mediation fails to reach an agreement, the verdict will be announced on October 30th at 9:50 AM.