NewJeans Faces Setback as Agency Feud Deepens 4 Months Into Hiatus

An unending string of troubles

The Korean idol group NewJeans, which has been on hiatus since March this year due to troubles with their agency ADOR and its parent company HYBE, still sees no resolution in sight for the ongoing turmoil surrounding the group once called the post-BTS top idols.

An entertainment reporter from a sports newspaper explains:

“The trouble began when Min Hee-jin (45), the producer of NewJeans and then-CEO of ADOR, was accused in August 2024 of attempting to wrest control of ADOR from HYBE. She was dismissed from her position as a result.

In response, the members of NewJeans strongly opposed her removal, demanding her reinstatement. They even stated that if she was not returned as CEO, they would terminate their exclusive contracts with ADOR. Starting in February, the members began independently using the name ‘NJZ’ for their activities, escalating the conflict.”

That same month, ADOR filed for an injunction with the Seoul Central District Court to ban NewJeans from engaging in music activities. In March, the court upheld the agency’s claim, leading to NewJeans’ official suspension from activities. Gochinobu Okada, a professor of sociology at Yamato University and an expert on Korean entertainment, commented:

“NewJeans had sought to terminate their contracts with ADOR citing a breakdown of trust, but their legal grounds were weak. The court did not side with them. Worse still, on May 30, the court ruled that if any member engages in entertainment activities without prior approval from the agency, they must each pay approximately 100 million yen per incident in damages to ADOR. Since NewJeans has a contract with ADOR lasting until July 2029, they will be unable to act independently for at least another four years.”

The De Facto Defeat of NewJeans

Journalist Soichiro Matsutani, who is well-versed in the Korean entertainment industry, points out that the group name is a major obstacle to resuming activities.

“The trademark rights for ‘NewJeans’ are owned by the agency, so the members cannot use the name freely. They tried to promote themselves under the name ‘NJZ,’ but the court issued an injunction against this. There is also the option of paying the agency a certain amount of royalties to use the group name, but I doubt ADOR would agree to that.

That’s because if ADOR concedes and sets a precedent by recognizing NewJeans’ claims, other groups might follow suit. The K-pop industry is based on contracts of up to seven years under Fair Trade Commission rules, so breaking that framework would shake the entire business model.”

Is there a way to reach a compromise? Matsutani continued:

“Perhaps a so-called white knight could emerge to buy out the group’s intellectual property rights and clear the path, but NewJeans was an extremely popular group making over 600-million-yen profit per member in 2023. The buyout would cost several billion yen, making it practically impossible.”

Professor Gochinobu Okada’s view is also bleak:

“The Seoul Central District Court fully accepted the agency’s claims in its ruling, but the members remain stubborn. Neither side is showing willingness to compromise. Although their contracts expire in 2029 freeing them legally, a four-year hiatus in the fast-moving K-pop world is significant. By the time they do gain independence, the public will likely have forgotten them. They will probably have no choice but to settle — effectively a defeat for NewJeans — by agreeing to conditions such as removing Min Hee-jin from her producer role.”

About four months have passed since their hiatus began, but there is still no clear prospect for their return to the spotlight. When that ETA (estimated time of arrival) will be remains uncertain.