Min Hee Jin Reveals KakaoTalk Chats: Huge Penalty Fee for NewJeans’ ADOR Contract Termination
A new report suggests that NewJeans may face a hefty contract termination fee from their agency, ADOR. The estimated penalty could reach 620 billion KRW, which is about 441 million USD. This figure comes from calculations based on the group’s projected monthly revenue of 2 billion KRW per member over the remaining 62 months of their seven-year contract.
In March, Min Hee Jin and two former deputy CEOs of ADOR talked about this potential fee in KakaoTalk conversations. These messages became public during a legal dispute where Min Hee Jin aimed to stop HYBE from using voting rights. Her team claimed the penalty discussion was an informal assessment of ADOR’s value.
NewJeans formally notified ADOR on November 13 that they might terminate their contract due to unresolved issues, including workplace harassment and failure to address leaked photos. They demanded a resolution within two weeks, suggesting a desire for Min Hee Jin’s reinstatement.
Min Hee Jin resigned from her role at ADOR on November 20, making it unlikely for her to return. With a deadline approaching on November 27, the possibility of a lawsuit concerning the termination penalties looms.
How might the allegations of workplace harassment impact NewJeans’ contractual obligations with ADOR?
Interview with Legal Expert Cho Gwang Hee on NewJeans’ Contract Dispute with ADOR
NewsDirectory3.com: Thank you for joining us today, Lawyer Cho. We’ve seen the recent report regarding NewJeans and the potential hefty contract termination fee of 620 billion KRW. Can you elaborate on the implications of this figure?
Cho Gwang Hee: Thank you for having me. The figure of 620 billion KRW is certainly eye-catching and represents a significant financial stake for NewJeans. This amount has been estimated by assessing their projected monthly revenue of 2 billion KRW per member over the remaining 62 months of their seven-year contract. It is important to note that such a fee is typically tied to the contractual obligations and the financial projections set forth at the time of signing.
NewsDirectory3.com: Recent reports indicate that NewJeans formally notified ADOR about potential contract termination due to unresolved issues like workplace harassment. How strong is NewJeans’ position in this situation?
Cho Gwang Hee: That’s a critical point. NewJeans’ claims regarding workplace harassment and other issues need to be substantiated with concrete evidence. In my view, the resolution of their complaints will primarily influence the validity of their contract. However, as it stands, there is no clear indication that ADOR has breached any terms based on the information available.
NewsDirectory3.com: You mentioned the discussion about the potential penalty stemming from discussions between Min Hee Jin and former ADOR executives. How does this impact NewJeans’ case legally, considering Min Hee Jin’s recent resignation?
Cho Gwang Hee: The discussions in KakaoTalk regarding the penalty could complicate the situation legally. If the discussions are deemed to imply a connection or collusion between NewJeans and Min Hee Jin, who was previously their agency head, it may raise questions about the legitimacy of their claims against ADOR. With Min Hee Jin’s resignation, the prospects of her reinstatement, which NewJeans seem to desire, appear increasingly unlikely. This might lead to a more challenging legal landscape given the growing intricacies of this case.
NewsDirectory3.com: The deadline for resolution is approaching quickly on November 27. What are NewJeans’ options moving forward?
Cho Gwang Hee: NewJeans is at a critical juncture. They can either push for an expedited resolution with ADOR to address their concerns or proceed with a formal lawsuit, which could be lengthy and public. However, pursuing legal action could further strain their relationship with ADOR and hinder their careers. It’s crucial that they weigh the implications of either path carefully.
NewsDirectory3.com: Lastly, what do you foresee as the potential outcomes if this situation escalates to a lawsuit?
Cho Gwang Hee: If a lawsuit is initiated, several factors will come into play, including the strength of the evidence presented by NewJeans and how the court interprets the contractual obligations between the parties. Should the court find in favor of ADOR, the penalty assessed could remain. But if substantial violations are identified, it could lead to a renegotiation of terms. Regardless of the outcome, it will be a pivotal moment for NewJeans’ future and the K-pop industry at large.
NewsDirectory3.com: Thank you, Lawyer Cho, for your insights on this complex situation. We appreciate your time.
Cho Gwang Hee: Thank you for having me; it’s always a pleasure to discuss important topics affecting the industry.
Legal experts say this situation is complicated for NewJeans. Lawyer Cho Gwang Hee noted that it is not clear if ADOR violated any contract terms based on NewJeans’ complaints. He indicated that unless substantial evidence is presented, their contract with ADOR will likely remain valid. Moreover, issues raised by NewJeans primarily involve HYBE, which is separate from ADOR.
In addition, Cho mentioned that statements regarding potential compensation could suggest illicit connections between NewJeans and Min Hee Jin, raising legal concerns.
For context, ADOR reported a revenue of 110.3 billion KRW in 2022. NewJeans debuted in July 2022 and has about five years remaining on their contract.