'Complete Defeat'—NewJeans Faces Uphill Battle in Appeal Over Exclusive Contract... 'Ruling Will Stand Without New Evidence'

[Financial News] After losing the lawsuit to confirm the validity of their exclusive contract with their agency ADOR, the girl group NewJeans has announced plans to appeal. However, legal experts believe that since the first trial meticulously examined the facts, it will be difficult to overturn the result on appeal unless new evidence or legal issues are presented.
According to legal sources on the 5th, the Civil Agreement Division 41 of the Seoul Central District Court (Presiding Judge Wonhyeong Lee) ruled on the 30th of last month in favor of ADOR in the lawsuit it filed against NewJeans to confirm the validity of the exclusive contract, stating, "The contract remains valid."
The court determined that the ten claims raised by NewJeans—including the alleged production gap following the dismissal of former CEO Min Hee-jin, the alleged neglect of concept plagiarism by Illit, and claims of discrimination and mistreatment within the agency—did not constitute grounds for contract termination. The court further stated, "It is also difficult to conclude that the trust between the two parties has been broken."
Notably, the court refuted most of NewJeans' arguments one by one based on evidence. Regarding the claim that management was left vacant after Min Hee-jin's dismissal, the court stated, "The contract does not stipulate that Min Hee-jin must personally oversee management duties," and thus did not accept the argument. Instead, it emphasized that Min Hee-jin declined ADOR's production proposal after her dismissal. The court also found that the internal audit leading to Min Hee-jin's dismissal was lawful, and all evidence obtained from messages during the audit was admissible. Based on this, the court stated, "It appears that Min Hee-jin intended to make ADOR independent by taking the NewJeans members with her."
The court also dismissed the claim of concept plagiarism by Illit, stating that it occurred during Min Hee-jin's tenure and could not be considered a breach of ADOR's duty of protection. The claim that NewJeans member Hanni was told by an Illit manager to 'just ignore and walk by' was also rejected, as CCTV footage showed Hanni bowing in greeting.
Given that the first trial verdict was reached after a thorough review of evidence, legal experts widely believe the outcome is likely to be upheld on appeal. No Jong-eon, an attorney at JONJE Law Firm, commented, "Unless new facts emerge that differ from those in the first trial, the verdict is likely to stand. Without new, decisive evidence unfavorable to Hybe, it will be difficult to overturn the ruling."
Of course, there have been cases where rulings on the validity of exclusive contracts were overturned on appeal. In 2019, the Civil Agreement Division 17 of the Seoul High Court (Presiding Judge Wonhyeong Lee) reversed the first trial in a case brought by celebrity A against their agency, ruling that "delayed settlements and unilateral notification of advertisement schedules are clear breaches of contract." In 2023, in another appeal involving singer B, the contract was deemed invalid after it was proven the agency prevented participation in a competition program. However, Attorney No explained, "Those cases involved some degree of fault on both sides. In contrast, in this case, no fault was recognized on the part of ADOR."
Some analysts suggest that, unlike the first trial, the appeal should focus less on breach of contract and more on personality rights, such as the impossibility of continuing activities due to a breakdown of trust. Tae Yeon Kim, an attorney at Taeyeon Law Office, noted, "Even if NewJeans is at fault, it could be argued that forcing the members to continue working in the entertainment industry and communicating with ADOR constitutes a violation of their personality rights."


scottchoi15@fnnews.com Choi Eun-sol Reporter