(Bloomberg) — K-pop superstars NewJeans officially declared they plan to part ways with Hybe Co., in a dramatic step that could spark legal battles between the music powerhouse and the girl group.
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The chart-topping K-pop band said as of Nov. 29 they are terminating their exclusive contract with the group’s label ADOR, an affiliate of South Korea’s biggest music company Hybe. At an emergency press conference on Thursday night, NewJeans said the termination is due to the management firm’s breach of contract.
“We are well aware that from today we may not be able to use our current name NewJeans,” said NewJeans member Danielle. “However, that doesn’t mean that we are giving up on the name at all. We will continue to fight for new dreams regardless of our name. Just remember that NewJeans never dies.”
NewJeans’ unilateral decision to break up with Hybe comes after a months-long revolt against the agency. With a few years left on their original contract, an objection from the management company may result in legal actions that could drag on for months or years.
A representative for NewJeans stated that the group may go through legal proceedings if necessary once they hire a lawyer. It is unclear how the group can continue their activities, whether through a new entity or with another record label.
In response, ADOR expressed regret over the group’s decision and claimed the company has not violated the contract.
“The exclusive agreement between ADOR and the NewJeans members remains in full effect,” ADOR said in a statement via Hybe representatives. “Therefore, we respectfully request that the group continue its collaboration with ADOR on upcoming activities, as has been the practice to date.”
The internal strife came to public earlier this year when Hybe argued that Min Hee-jin, the producer behind the group, had attempted to seize control of the label. Min refuted the allegation and publicly denounced Hybe.
Min, who owns an 18% of stake in ADOR, was ordered by its board to step down from the top management role, while remaining as a board member and producer. NewJeans sent an ultimatum to Hybe, demanding the firm reinstate the ousted producer as chief executive officer.
Without Hybe’s decision to reinstate Min, the producer stepped down from the board and left the company last week, warning of legal actions against alleged illegal acts by Hybe.
NewJeans debuted in 2022 as a five-member act and quickly became one of the most popular K-pop bands globally, with hits like Attention and Super Shy. The group helped the music label generate about 110 billion won ($79 million) of revenue last year, contributing to about 5% of Hybe’s consolidated sales.
“We would certainly love to continue working with Min if we can,” said another member, Minji.
–With assistance from Denny Thomas.
(Adds ADOR statement in paragraph 6 and 7)
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