The future of NewJeans with HYBE is under intense scrutiny as the girl group considers terminating their contract with the agency. If they go through with the decision, they could face an eye-watering penalty fee.
Why Are NewJeans Considering Contract Termination?
On November 13, NewJeans submitted a formal notice to HYBE, citing six unresolved issues, including:
- Allegations of workplace harassment involving member Hanni
- Past photo leaks that have yet to be addressed
Some speculated that their demands included reinstating Min Hee Jin as ADOR’s CEO. However, Min Hee Jin announced her resignation as ADOR’s internal director on November 20, leaving questions about the group’s future with the agency.
What Is the Estimated Penalty Fee?
If NewJeans terminates their contract, they might face a 620 billion KRW penalty fee, equivalent to approximately 124 billion KRW per member.
This amount is based on the group’s reported monthly revenue of 2 billion KRW per member, multiplied by the 62 months remaining in their seven-year contract with ADOR.
This figure was originally estimated during a KakaoTalk conversation in March between Min Hee Jin and two former ADOR deputy CEOs. Her legal team described it as a rough method for assessing the company’s value during her legal disputes with HYBE.
What’s Next for NewJeans?
With the termination notice deadline set for November 27, fans and industry insiders are closely watching for updates. If the group proceeds, it could lead to high-profile lawsuits over the penalty fees.
Meanwhile, criticism has also been directed at Min Hee Jin for her resignation. Some have accused her of “abandoning” the group amid their ongoing feud with HYBE, further complicating the situation.
A Complicated Future
NewJeans still have five years remaining on their initial contract signed at debut. Whether they stay or leave, the outcome will likely have significant implications for the K-pop industry.
