NJZ dealt blow as court sides with ADOR

The Seoul Central District Court ordered the members of K-pop group NewJeans to cease their independent activities and return to their agency, ADOR, dealing a blow to the group’s ongoing legal battle for independence. Following the ruling, ADOR thanked the court for its “wise decision," while the members said they'd appeal and fight.
The Seoul Central District Court granted an injunction filed by ADOR, siding with the label in a high-profile dispute that has captivated the Korean entertainment industry. The court concluded on Friday that the group’s termination of its exclusive contracts last November lacked sufficient legal basis, citing an absence of compelling evidence.
“There is insufficient evidence to support the claims made by the NewJeans members,” the court stated in its decision, which effectively halted the group’s self-managed activities under the name “NJZ.”
The label welcomed the ruling and reaffirmed its commitment to fulfilling its contractual obligations.
“With the court’s confirmation of our legal status as NewJeans’ agency, we commit to ensuring continued support for the members,” the company said in a statement.
The dispute began when the members of NewJeans — now referring to themselves as NJZ — announced the termination of their contracts with ADOR in November last year based on claims such as the unfair employment termination of former ADOR CEO Min Hee-jin and the label's disruption of collaborations with other companies and advertisers.
But the court dismissed those arguments, ruling that Min’s ouster was not legally relevant to the group’s exclusive management.
“The contracts did not guarantee exclusive management by former CEO Min, and it remains unclear if that was a determining factor in the signing of the contracts,” the court said.

Regarding ADOR’s reported interference with external collaborations, the court found that internal disputes between the agency and third-party companies did not constitute a violation of its core contractual responsibilities.
“ADOR’s conflict with another company does not substantiate the claim that it breached a crucial obligation concerning the exclusive contracts,” the court said.
The court acknowledged ADOR’s efforts to meet its legal duties, noting that NewJeans’ contract termination would result in a significant financial setback for the company.

“The creditor [ADOR] has met most of its legal duties,” the court said. “The agency assumed significant risks in developing and supporting the group and would likely suffer substantial financial losses if the members were permitted to terminate their contracts less than two years after debuting.”
Despite the setback, NewJeans announced they would appeal the decision and continue to assert their claims in court.
“We regret the court’s ruling and will pursue an appeal, providing further evidence to support our position,” the members’ parents said in a joint statement posted on the @njz_pr Instagram account. “On April 3, the date for pleading, we will reaffirm that the termination of the members’ contracts was just.”

The members, however, added that they will proceed with their scheduled performance at ComplexCon Hong Kong’s “Complex Live!” concert on Sunday out of respect for the fans and staff involved in the event.
BY YOON SEUNG-JIN [yoon.seungjin@joongang.co.kr]