NewJeans vs. ADOR: Legal Battle and the Call for Artist Rights
Article Input: 2025-10-25 | Author: Orchid
Hello, I'm Jang Young-kwan, CEO of Inside Vietnam. This post features selected entertainment news from Vietnam, covering both Korean and global entertainment.
Ahead of the final verdict (October 30th) in the exclusive contract dispute between NewJeans and ADOR, we summarize a petition by 32 Korean intellectuals and social activists who protest the ban on NewJeans' artistic activities and demand the guarantee of their rights. They argue for activity guarantees based on structural inequalities in standard contracts, the gap with the American-style licensed agent model, and NewJeans' economic contribution to HYBE. Critics and journalists have also proposed a '2-year transfer' compromise. This article examines the dispute's progress, the repercussions of the injunction, the petition's key points, and future issues.
The court's ruling on the contract between NewJeans and ADOR is scheduled to be announced on October 30th. - Photo: ADOR
Case Overview and Current Status.
The legal dispute between NewJeans and ADOR began with NewJeans' declaration of contract termination and ADOR's lawsuit to confirm the validity of the contract. Both sides underwent three trials and two mediations without reaching an agreement, and the third trial concluded on July 24th. The final verdict is scheduled to be delivered on October 30th at the Seoul Central District Court.
Repercussions of the Injunction and Suspension of Activities.
Following the Seoul Central District Court's injunction, NewJeans' artistic and commercial activities were completely prohibited. This measure forced the group to suspend all activities for more than six months from March 2025, leaving a significant void in domestic and international fandoms and the industry as a whole. The suspension of activities caused a chain reaction, affecting brand contracts, performances, broadcasts, and overseas promotions.
Summary of the Joint Statement by 32 Intellectuals.
On October 22nd, 32 influential Korean intellectuals and social activists issued a joint statement strongly opposing the ban on NewJeans' activities. Signatories included former Assemblywoman Song Hye-won, Catholic University Professor Song Ki-seon, People's Economy Research Institute Director Ahn Jin-geol, former Reform Party Assemblyman Cho Dae-won, and critic Kim Seong-soo, including scholars, lawyers, and civic activists. They expressed regret over the reality that artistic activities were completely prohibited by the court's interim decision and emphasized the need for institutional mechanisms to guarantee artists' creative and professional activities.
Structure and Inequality Issues of Standard Contracts.
The joint statement points out structural problems in the Ministry of Culture, Sports and Tourism's standard contract. The current standard contract is premised on a long-term subordination structure of typically seven years, and in practice, many obligations are transferred to the artist, and authority over activities, schedules, and content is concentrated on the agency. Petitioners expressed concern that this structure makes it difficult for artists to recover their rights in the event of a dispute and can lead to excessive results such as activity bans.
Comparison with the American Licensed Agent Model.
The statement mentions the American 'licensed agent' model, explaining that legal protections such as 'opt-out' clauses, where artists can negotiate, renew, and withdraw contracts with agents on an equal footing, are institutionalized. On the other hand, the Korean system still has a practice of management companies exclusively exercising rights, presenting the problem that artists' choices are excessively limited in similar disputes.
Economic Impact of HYBE, ADOR, and NewJeans.
The statement also highlighted the economic achievements of NewJeans' contribution to the HYBE ecosystem. Chairman Bang Si-hyuk invested approximately 16 billion won in October 2021 to establish ADOR, and after NewJeans' debut in July 2022, HYBE's operating profit increased to almost four times the initial capital. This was presented as an example of the impact of NewJeans' influence and commercial value on the industry as a whole.
Proposed Compromise Solution, '2-Year Transfer' Model.
Critics Kim Seong-soo and journalist Byun Hee-jae (Media Watch) submitted a separate petition to the Seoul Central District Court's Civil Division 41 (Presiding Judge Jung Hee-il), proposing a '2-year transfer' compromise. This is a way to minimize the gap by adjusting the interests of the artist and the company to allow transfer and activities for a certain period. The joint statement side also urged the court and government to actively consider such practical alternatives so that national cultural assets can continue their activities.
Delivery Route and Requirements of the Petition.
The joint statement was officially delivered to the Presidential Office, Minister of Culture, Sports and Tourism Choi Hwi-young, and Seoul Central District Court Civil Division 41. They requested that the court consider both the artist's right to perform their profession and the public's right to enjoy culture to alleviate the excessiveness of the injunction, and that the government revise the fair contract framework and dispute resolution system. They also called on the agency to make responsible adjustments and find win-win solutions.
Points to Watch After the October 30th Ruling.
The outcome of the ruling may mark a turning point in K-pop management contract practices and dispute resolution processes, beyond whether NewJeans will resume activities. Depending on the details of the judgment, such as adjustments to the scope of the injunction, judgments on contract validity, and interim operating agreements, the benchmark for future similar cases is expected to be set. At the same time, the key issue is whether the government and industry will institutionalize standard contract improvements, activity guarantee mechanisms during disputes, and artist protection devices.
Message to the Industry and Fandom.
This case raises again the balance between the two values of 'contract stability' and 'creator's rights'. In order to minimize industrial losses and global trust degradation caused by prolonged disputes, a permanent adjustment mechanism involving the court's rational judgment and the participation of the government, industry, and artists is needed. Above all, K-pop's sustainability is strengthened when fair partnerships are institutionalized while respecting artists' creative freedom.
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Source :https://blog.naver.com/world-response/224053702388
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