K-pop band NewJeans leaves label over 'mistreatment'

Chart-topping K-pop group NewJeans announced Thursday that they will leave their label ADOR, accusing the company of "mistreatment."

The news comes two weeks after the girl group sent an ultimatum to ADOR parent company HYBE—behind K-pop sensation BTS—telling the firm they would terminate their contract unless a set of demands was met.

"From midnight today, our contract will be terminated with ADOR," member Minji said at a press conference.

NewJeans debuted in 2022, and the K-pop phenomenon is among HYBE's most successful groups.

Band member Hanni said Thursday the group has "faced mistreatment, not just towards us but also including our staff", without elaborating.

NewJeans experienced "deliberate miscommunications and manipulation regarding multiple areas," she said.

"This is not the type of work ethic we respect and not one we want to be a part of, and continuing to work under a company with no intention of protecting NewJeans would only do us harm," said Hanni.

ADOR did not immediately respond to AFP requests to comment on the announcement.

The band members said they would continue their contractual obligations but acknowledged they may no longer be able to use the name NewJeans.

"However, that doesn't mean we are giving up on the name at all," said Danielle. "We will continue to fight for NewJeans. NewJeans never die."

The group's demands addressed to HYBE included an apology for a comment by one of the company's managers, who NewJeans accuses of bullying, and the immediate reinstatement of their producer, Min Hee-jin.

Min resigned last week from ADOR's board of directors after HYBE accused her of a breach of trust, which sparked a sprawling legal and PR battle.

Industry experts said NewJeans expected the decision.

"The contract termination lawsuit itself has been widely anticipated in the market, so today's press conference, in a way, seems to have a predetermined outcome," said Lim Soo-jin, an analyst at Daishin Securities.

"Entertainment analysts have generally excluded NewJeans-related projections from next year's estimates, so the overall impact is not expected to be substantial," he told AFP.

He added that the hefty fee NewJeans may have to pay will compensate for the label's "financial loss."

Legal experts suggest that the K-pop group may be subject to a contractual penalty of up to 620 billion won ($440 million).

The band members, however, disagree.

"We have not breached the exclusive contract and have done our best in our activities so far, so we believe there is no reason for us to pay any penalty," said band member Haerin.

"On the contrary, ADOR and HYBE violated the contract, leading to this situation, and the responsibility clearly lies with them."