NewJeans decline to appeal injunction in contract dispute with label


NewJeans at a press conference in 2024. Photo by Chung Sung-Jun/Getty Images


 

NewJeans, the Korean pop group behind 2023’s “Super Shy,” are currently stuck in a complex and drawn-out legal battle with their label Ador. After a Korean high court’s recent decision barring them from continuing independent activities outside of Ador’s oversight, NewJeans decided not to file an appeal before last week’s deadline, The Korea Herald reports.

That means, for now, NewJeans may not engage in any new commercial activity without Ador’s approval. In November, NewJeans announced that they would be terminating their contract with Ador over a breach of trust; Ador has maintained that the contract is still valid, and in January launched a lawsuit asking a Korean court to confirm the agreement.

With Ador’s lawsuit still ongoing, NewJeans may still be able to leave the label, and their decision not to appeal may have been in order to stay in the court’s good graces. Entertainment lawyer Bae Jin-sung tells the Herald: “They may have wanted to avoid appearing defiant of the court’s decision, especially since it could influence the main lawsuit still in progress.”

However, Bae says it could be two and a half years before NewJeans sees a resolution, a timeframe that could be fatal for any pop group. And even in the case of a NewJeans victory, Ador could still file a new lawsuit for lost income.

NewJeans’ breach of trust lawsuit is reportedly based on five claims, including the dismissal of former Ador CEO Min Hee-jin. Bae describes that decision as a “shareholder right,” adding “[it’s] hard to legally frame that as a betrayal of trust or contractual violation.”

“It’s difficult to comment definitively without reviewing the evidence,” Bae says. “But based on what has been made public, NewJeans’ chances of winning seem low.”