NewJeans’ Approach To Terminating Their Contract Receives Drastically Different Reactions
On November 28, NewJeans held an emergency press conference to discuss their early contract termination. As of November 29, the group is no longer under their former label, ADOR.
At the press conference, Haerin stated that NewJeans has no intention of paying the fee for terminating their contracts early because NewJeans is not at fault. Rather, ADOR and HYBE should be responsible for covering the cost.
I’ve read several articles about penalties, but we have not violated our exclusive contract. We’ve worked hard and done our best so far, so we believe there’s no reason for us to pay any penalties.
— Haerin
NewJeans reiterated this in a statement released by the members on November 29. Among other things, NewJeans stated that ADOR “violated the obligations under the contract,” that NewJeans can freely continue with activities because there is “no reason to file an injunction to terminate the contract,” and that NewJeans “are not obligated to pay a penalty.”
The five members hereby notify ADOR of the termination of our exclusive contracts as ADOR has violated the obligations under the contract and has not corrected them within the request period. The termination notice is per the contract, and we have all signed the termination document. The notice will take effect immediately after reaching ADOR on November 29, 2024. Thus, the exclusive contract will be invalid from that point on. With this, there is no reason to file an injunction to terminate the contract, and we can freely continue activities starting from November 29, 2024.
Additionally, the five of us have faithfully fulfilled our obligations under the contract. Because the termination of our contracts was due to ADOR’s breach of contract terminated our contracts, we are not obligated to pay a penalty.
— NewJeans
NewJeans’ claims that they do not need to file an injunction or pay penalty fees have sparked debates online about whether or not NewJeans is legally in the right. According to some legal experts in South Korea, including former judge Lee Hyung Gon, NewJeans can end their contract without litigation, and their strategy is a “smart” one.
Normally, celebrities will apply for provisional injunctions if they want to terminate their exclusive contracts. But if so, all their activities will be restricted until the court comes to a conclusion. NewJeans announced their termination without a lawsuit, making it a situation where ADOR has to file a lawsuit instead. This is a smart strategy. It is also an unfounded claim that the termination of a contract without litigation is invalid. They have sufficient reasons for the termination of the contract, unlike HYBE’s unilateral termination of their shareholder contract with Min Hee Jin.
— NewJeans
Still, NewJeans’ approach has received mixed reactions from the public. Some netizens say the group’s “impulsive” choice wasn’t thought through and that the members are “entitled.”
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Others claimed that NewJeans would need to prove in court that ADOR has violated the terms of their exclusive contract to avoid paying penalty fees. Likewise, ADOR would need to prove that the company was not in breach of contract and/or that NewJeans violated the terms.
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in their contract it was clearly stated that if ador breaches the contract, then newjeans are free to terminate it without paying any legal fees (and vice versa). since ador failed to correct all the violations (para 2) within 14-days deadline, newjeans are free to terminate it. pic.twitter.com/PLOUm5B3ur
— ☘︎ (@nwjnsbts) November 28, 2024
Still, other netizens are expressing their wholehearted support for NewJeans’ choices and have argued that NewJeans’ decision was not impulsive but rather one that they believe has been backed by a legal team.
why do these weirdos act like newjeans didn’t have lawyers from the beginning of all this? the reason they are confident is because they know hybe broke the contract first 😭 like? pic.twitter.com/7JHrawUUUV
— ✿ (@haerin1st) November 28, 2024
anyone from those three fandoms that says they know more about newjeans, exclusive contracts, and termination clauses — i guarantee you that they DO NOT KNOW JACK SHIT about newjeans, exclusive contracts and termination clauses. pic.twitter.com/X6x0izAAPr
— PoppyKPoppie (@PoppyKPoppie) November 28, 2024
The court has already specified that if third parties(e.g., parent company, other labels) interfere with NewJeans' entertainment activities and ADOR fails to take appropriate measures, NewJeans can terminate their exclusive contract.
(Court Ruling Translation from @juantokki) https://t.co/XrHqK1Oyt7 pic.twitter.com/WG6aY8z2t0— . (@NJBUBBLEGUM) November 24, 2024
What are your thoughts?
NewJeans’ Emergency Press Conference In A Nutshell: 4 Key Takeaways
