Five things to know about NewJeans' shock split from agency

Chart-topping group NewJeans shocked K-pop by announcing they are quitting their label ADOR over what they described as "mistreatment."

Here are five things to know on the row: what this means for the multi-billion-dollar industry and what is next for the group.

Who are they?

NewJeans debuted in 2022 and has five members under 20: Haerin, Danielle, Hanni, Minji, and Hyein.

They are among the South Korean entertainment powerhouse HYBE's most successful K-pop groups, along with BTS.

The group has topped global charts, including the Billboard 200, and broke the Guinness World Record last year for "Fastest K-pop act to reach 1 billion streams on Spotify".

NewJeans' producer is Min Hee-jin, a creative director widely regarded as one of the most successful in the K-pop scene, having worked with stars such as Girls' Generation, EXO, and SHINee.

FILE PHOTO: K-pop girl band NewJeans poses for a photograph during 2025 SS Seoul Fashion Week at Dongdaemun Design Plaza (DDP) in Seoul, South Korea, September 3, 2024. REUTERS/Kim Soo-hyeon/File Photo

What happened?

The saga began in April when HYBE attempted to push Min, then CEO of subsidiary ADOR, out.

The company accused the producer of breach of trust, but the move sparked a sprawling legal and PR battle. Min accused HYBE of copying her star-making formula for a competing girl band.

After being dismissed as CEO in August, Min resigned from ADOR's board of directors last week, citing a "hellish dispute with HYBE" and vowed legal action against the company. Voicing solidarity with Min, the group sent a request to HYBE demanding her reinstatement.

In the throes of the crisis, one of the group's members, Hanni, gave a tearful testimony to South Korean lawmakers overseeing workplace conditions and safety, saying they had been subject to workplace bullying.

In a late-night press conference on Thursday, the group finally announced the end of their contract with ADOR.

But ADOR insisted that their contract "remains in full effect" and therefore, they "respectfully request that the group continue its collaboration with ADOR on upcoming activities, as has been the practice to date".

K-pop band NewJeans Instagram

Is this an isolated case in K-pop?

"Historically, the contractual relationship between agencies and group members has repeatedly caused problems over the years," Lee Dong-yeon, a professor at the Korea National University of Arts, told AFP.

In 2009, the iconic boy band TVXQ shocked the industry by taking legal action against their label over their 13-year contract, which they likened to a "slave contract" due to excessive working hours and unfair profit distribution.

Recently, in 2023, some members of FIFTY FIFTY sought to suspend their contracts, citing a lack of financial transparency and health neglect.

Kim Jin-gak, a Sungshin Women's University professor, said the NewJeans case "seems to have arisen because the parent company tried to exert too much control.

"While it may not significantly impact the entire K-pop industry, I believe it could change how K-pop operations are managed."

What's next?

The legal battles will continue, and "the process is expected to take a long time," said lawyer Kim Tae-yeon.

"Given the additional complexities in this case, it could take two to three years or more if it goes to litigation," she added.

The most significant legal issue would be whether or not the girl band would have to face a contractual penalty, which experts predict could amount to up to 620 billion won ($440 million).

"If the court finds that the company is at fault, as NewJeans claims, and that NewJeans did nothing wrong, they could defend themselves against any penalties," said Kim.

HYBE's share price was down five percent in early trading Friday.

However, the market has already priced the incident in, and penalties will "result in an insignificant amount of financial loss for HYBE," Lim Soo-jin, an analyst at Daishin Securities, told AFP.

Will NewJeans continue in the meantime?

For now, NewJeans is no more. Or at least the name may have to go because the label has exclusive rights.

But Danielle, one of the group's members, said they will keep fighting to continue making music together.

"We really wish to be able to release new music for Bunnies next year as soon as possible ... and we really hope that we have the opportunity to meet you guys from all around the world," she said, referring to the name for their fandom.

"Regardless of our name, just remember that NewJeans never dies."