According to Korean media reports on July 31, ADOR argued in court that if the group maintained their exclusive contracts, NewJeans members could continue to operate at the highest level, without being fined, compensated for damages and discriminated against for being considered "unpromising celebrities".
The management company warned that the termination of the contract would cause "serious damage" to the members, including the loss of comprehensive support from HYBE and ADOR, legal disputes over compensation, and even the risk of threatening ADOR's existence as a company.
ADOR stated, "If the exclusive contract is terminated, it will cause serious damage to the NewJeans members. NewJeans will lose the full support of ADOR and HYBE (ADOR's parent company), as well as their idol image.
Legal disputes over sanctions and compensation will follow. Maintaining jobs for ADOR employees will also be difficult. The court itself has determined that if the exclusive contract is terminated, ADOR's existence will be threatened.
However, some netizens believe that the responsibility for ensuring jobs for employees belongs to HYBE as the parent company, not NewJeans.
They also questioned HYBE's previous activities, citing allegations that employees were forced to sign non-competitive agreements and non- Dawling terms that legal experts believe could violate workers' rights and violate Korean labor law.
In a recent article, concerns have emerged that HYBE is often hailed as a top workplace, but is actually "tingling" employees through these uncompetitive confidentiality agreements.
Accordingly, employees who leave HYBE will be banned from working not only at competing entertainment companies but also in similar fields for a year. The signing of these agreements is overseen by Kim Joo Young, HYBE's human resources director and currently ADOR's CEO.
Korean netizens are still divided about the disagreement between NewJeans and ADOR.
Comments on the issue include: "Why is HYBE now saying NewJeans is a key factor for K-pop?"
"It is undeniable that HYBE is a very bad company, but that does not change the fact that NewJeans is violating the contract without a legitimate reason."
"Both HYBE and NewJeans need to take responsibility for what they have done."
"NewJeans should pay the fine if they really want to leave ADOR."
"ADOR will have to close if NewJeans leaves, as they are the only artist in that agency."