It is reported that the group NewJeans may have to bear a penalty of up to 620 billion won if they pursue a termination of their exclusive contract with Adore.
According to Chosun.com on the 24th, former Adore CEO Min Hee-jin and former deputy representatives estimated the penalty amount for NewJeans’ contract termination from 450 billion won to 620 billion won last March. This was confirmed through the disclosed conversation content during the injunction filing process that Min filed against HYBE to prohibit the exercise of voting rights.
According to the conversation record, Deputy A stated, “By setting the average monthly sales per member at 200 million won, and assuming the termination point as the end of June, the remaining period is 62 months. The termination amount per member is expected to be approximately 12.4 billion won, totaling 620 billion won for 5 members.” Then, former CEO Min replied, “NewJeans? That’s not much, is it?”
In response, Deputy B said, “We should set the average monthly sales at 2 billion won per person.” Deputy A corrected, saying, “I calculated based on the settlement amount,” and further mentioned, “It seems like the sales amount would be 1.5 billion to 2 billion won per person. 450 billion to 620 billion won.”
NewJeans, who debuted in July 2022, currently has about 5 years remaining in their contract period. Assuming an average monthly sales of 2 billion won per member and applying the remaining contract period of 62 months, a penalty of 124 billion won per individual and a total of 620 billion won for all 5 members is estimated.
In the legal field, it is analyzed that even if NewJeans bears the penalty and files a lawsuit, it would be challenging to prove a fault on Adore’s part. This is because, as known so far, there is insufficient evidence to suggest that Adore violated contractual obligations.
Meanwhile, on the 13th, NewJeans sent a proof of content demanding the return of former CEO Min Hee-jin to Adore, but since Min left the company on the 20th along with resigning from her internal director position, a return has become virtually impossible.