In a bold statement, HYBE’s CEO has demonstrated a commitment to maintaining principles amidst escalating tensions with the girl group NewJeans. During the HYBE shareholders meeting on September 12, CEO Lee Jae-Sang expressed, “We will respond calmly and according to principles,” following an emergency live broadcast that NewJeans held a day prior.
The live broadcast, conducted by NewJeans on their newly launched nwjns channel, was their first official stance regarding the recent turmoil surrounding the former Adore CEO Min Hee-Jin, who faces allegations of workplace misconduct. NewJeans clarified that the live session was not directed by Min Hee-Jin and emphasized their desire for the return of Adore’s integrated management, stating that maintaining good relations with HYBE is their primary goal.
This situation serves as a warning from NewJeans that they may pursue legal actions, such as a request to suspend the contract's effectiveness, if their demands are not met by the set deadline of September 25. According to the Fair Trade Commission’s standard contract, if any party fails to comply with the terms, a two-week grace period is given to rectify the situation before potential damages or contract termination can be claimed.
With expectations that a return to original leadership may be unlikely, NewJeans faces tough choices ahead. They must decide between compromising their stance and remaining with Adore, initiating legal disputes, or opting for a costly contract termination, with estimated penalties potentially exceeding 300 billion won.
