Will Ex-K-Pop Boss Sacrifice $18M to Keep NewJeans Together?

The ongoing conflict between the K-pop group NewJeans and their label Hybe has reached a pivotal moment as Min Hee-jin, the former CEO of Ador (a Hybe subsidiary), has offered to relinquish a payout of 25.6 billion won (approximately $17.9 million or £13.2 million) if Hybe agrees to drop all legal actions against the group. This development highlights the intense pressure surrounding the band, which has garnered immense popularity since their debut in 2022.

Last updated: 23 October 2023 (BST)

What’s happening now

Min Hee-jin's dramatic offer comes amid a tumultuous legal battle that has seen NewJeans embroiled in lawsuits following her dismissal as CEO of Ador in August 2024. Her appeal for peace and the cessation of legal disputes suggests a deep concern for the well-being of the group, which she views as being adversely affected by the ongoing turmoil. As the situation unfolds, fans are rallying behind the group, demanding an end to the conflicts that threaten their careers.

Key takeaways

• Min Hee-jin has offered to forgo a £13.2 million payout to resolve legal disputes involving NewJeans.
• The conflict arose after Min was ousted as CEO of Ador, leading to lawsuits against the group.
• NewJeans announced their intention to leave Ador following Min's departure.

Timeline: how we got here

The situation has escalated over several months, marked by significant events:

• August 2024: Min Hee-jin is dismissed as CEO of Ador.
• December 2024: Hybe terminates NewJeans member Danielle Marsh’s contract and sues her.
• October 2025: A South Korean district court rules that NewJeans must honour their contract with Ador until 2029.
• October 2025: Min wins a ruling in a dispute over a put option against Hybe, leading to a 25.6 billion won payout.

What’s new vs what’s known

New today/this week

Min Hee-jin's willingness to forgo her payout in exchange for dropping lawsuits against NewJeans represents a significant shift in the dynamics of the ongoing conflict. She has explicitly stated her motivations are rooted in her love for the group rather than financial gain.

What was already established

Prior to Min's recent statements, it was well-known that NewJeans had been locked in a battle with Hybe over their contracts and the implications of Min’s dismissal. The ruling that NewJeans must stay with Ador until 2029 has added to the pressure faced by the group.

Impact for the UK

Consumers and households

The situation has implications for K-pop consumers in the UK, particularly fans of NewJeans and the broader K-pop community. The legal battles may affect merchandise availability, concert tours, and the overall engagement of artists with their fans.

Businesses and jobs

The fallout from this dispute could extend to the UK music industry, especially as the popularity of K-pop continues to grow. Companies involved in promoting K-pop acts may need to navigate the complexities of artist contracts more carefully to avoid similar disputes.

Policy and regulation

The legal challenges facing NewJeans could inspire discussions around artist rights and contract regulations in the UK music industry, potentially leading to more robust protections for artists against unfair contractual obligations.

Numbers that matter

• 25.6 billion won (£13.2 million) - the amount Min Hee-jin is willing to forgo.
• 5 - the number of members in NewJeans who are currently affected by these disputes.
• 2029 - the year until which the court has ruled NewJeans must honour their contract with Ador.

Definitions and jargon buster

• Put option: A financial contract that gives its owner the right to sell an asset at a predetermined price at a future date.
• K-pop: A genre of popular music originating from South Korea that includes a diverse range of styles.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, observers should watch for Hybe's response to Min Hee-jin’s offer and any potential negotiations aimed at resolving the ongoing disputes.

Medium term (1–6 months)

Longer-term, the implications of this conflict could lead to shifts in how contracts are structured within the K-pop industry, especially regarding the rights of artists versus their management.

Signals to watch

• Updates on legal proceedings involving Hybe and NewJeans.
• Statements from Hybe regarding Min Hee-jin’s offer.
• Future concert announcements or merchandise releases from NewJeans.

Practical guidance

Do

• Follow updates from reliable sources regarding the ongoing legal situation.
• Support NewJeans by engaging with their music and merchandise.

Don’t

• Participate in negative discourse around the artists involved.
• Assume outcomes based on speculation without confirmed information.

Checklist

• Stay informed about the legal developments surrounding NewJeans.
• Engage positively with the K-pop community to support artists.
• Monitor Hybe and Ador's official channels for announcements.

Risks, caveats, and uncertainties

While Min Hee-jin's offer to forgo her payout presents a potential path to reconciliation, the complexities of the legal system and the interests of Hybe, as a major entertainment conglomerate, may complicate matters. The outcomes of ongoing legal disputes remain uncertain, and any statements from involved parties should be taken with caution until definitive resolutions are reached.

Bottom line

The situation surrounding NewJeans and their management is a critical moment in K-pop, highlighting the tension between artist autonomy and corporate interests. As developments unfold, the commitment of all parties to prioritise the well-being of the artists will be paramount in shaping the future of the group and the genre as a whole.

FAQs

What is NewJeans' current status with Hybe?

NewJeans is currently facing legal disputes with Hybe after their former CEO, Min Hee-jin, was dismissed. They are required to honour their contract with Ador until 2029.

What does Min Hee-jin's offer entail?

Min Hee-jin has offered to forgo a payout of 25.6 billion won if Hybe drops all lawsuits against NewJeans and related parties.

How has the K-pop community reacted to the situation?

The K-pop community has shown significant support for NewJeans, with fans urging Hybe to "free NewJeans" from their contractual obligations amidst the ongoing legal battles.