These Australian teens stood up to a giant record label. Now they’re feeling the pain

Last year, five young women – including two Australians – stood up against one of the most powerful conglomerates in K-pop. NewJeans, a hugely popular South Korean girl group, tried to part ways with entertainment giant Hybe.

Now they’re paying the price.

Since their debut in 2022, NewJeans had quickly topped South Korean charts. They broke the Guinness world record for the fastest K-pop act to reach 1 billion streams on Spotify, surpassing groups such as BTS and Blackpink. With members aged between 16 and 20 years of age, they’re the only group under the label Ador, a Hybe subsidiary.

However, after less than three years on the scene, this legal stoush with Ador’s parent company led the group to announce this week that they would pause both performing and releasing new music.

Shockwaves rippled through the K-pop world as fans questioned whether other groups would start speaking up for their own interests.

NewJeans members attend the first court hearing for the Ador lawsuit at Seoul Central District Court in Seocho-gu on March 7.Credit: ImaZins via Getty Images

Adam Zulawnik, a researcher in Korean studies at the University of Melbourne, said the K-pop industry tended to exert more control over its artists than, say, the US industry.

“South Korean entertainment agencies are known for their in-house incubation system, whereby artists are often nurtured and micromanaged from conceptualisation through to choreography, performance style, labels, as well as sales and marketing,” he says.

“This means that South Korean entertainment agencies have much greater legal leverage over performers.”

From left: Haerin, Danielle, Minji, Hanni and Hyein of girl group NewJeans hold a press conference in November after announcing the termination of their contract with their Ador.Credit: Getty Images

The seeds of discontent

Last April, Hybe launched an audit of Ador, suspecting its executives were attempting to seize control. It also called on Ador’s chief executive, Min Hee-jin – often dubbed the “mother” of NewJeans – to step down.

Min rejected all claims against her, and accused Hybe of undermining NewJeans by facilitating the creation of girl group ILLIT by fellow Hybe subsidiary Belift Lab last year. She alleged the group “copied” NewJeans’ style and sound. Hybe and Belift Lab denied this.

Hybe accused Min of “a breach of trust and other related allegations”. Hybe and NewJeans’ management were contacted for comment.

Conflicts escalate

In May, Hybe requested a shareholder meeting to remove Min as chief executive. In response, Min filed an injunction against the company, which was granted by the Seoul Central District Court.

In August, Ador announced the director of Hybe’s board, Kim Ju-young, would replace Min.

Min called it “a grave violation of the shareholders’ contract”, which Ador denied.

Min wasn’t the only one concerned. Hanni Pham, one of NewJeans’ Australian members, spoke about alleged workplace harassment she experienced at Hybe, during the South Korean Labour Committee’s National Assembly in October. She claimed the group was ignored and badmouthed by Hybe employees.

NewJeans announced their separation from Ador in November.Credit: AP

Hanni, alongside NewJeans members Danielle Marsh, Kang Hae-rin, Lee Hye-in and Kim Min-ji, announced the termination of their exclusive contracts with Ador in November.

“We will continue to fight for NewJeans. Regardless of our name, just remember that NewJeans never dies,” Marsh, the other Australian member, said back then.

Ador quickly dismissed this, arguing an alleged breach of trust is insufficient to terminate a contract. On December 4, the label filed a lawsuit to verify NewJeans’ contract validity, and requested an injunction to stop them from signing new brand deals, and engaging in entertainment activities.

From rebrand to hiatus

NewJeans has expressed support for Min since her removal, crediting her for protecting the group. After failed attempts to reinstate her, they distanced themselves from their parent label by creating new social accounts and renaming themselves NJZ.

Fans rallied around the rebranding, with more than 30,000 signing a petition to encourage Ador to allow NewJeans to freely operate as NJZ.

Last week, the Seoul Central District Court ruled in favour of Ador. Days later, on March 23, during their first public performance as NJZ at ComplexCon Hong Kong, they announced their hiatus.

“Out of respect for the court’s decision, we’ve decided to pause all our activities for now,” Pham said.

Marsh added: “We had to speak up to protect the values we believe in, and that was a choice we don’t regret at all.”

What this could mean for the industry

Despite the attention on NewJeans’ case, senior lecturer in media and music at Macquarie University Dr Sarah Keith says she doesn’t think other K-pop groups will follow suit, given the potential loss of earnings and reputational damage.

However, it could trigger legislative change, such as new kinds of contracts, additional clauses around breaking contracts, and robust mediation practices.

“There are reputational effects on the K-pop industry every time a group enters a public dispute, or alleges mistreatment. It’s in the best interests of the industry, and the South Korean government, to ensure that K-pop artists and companies have mutually beneficial arrangements to avoid this.”

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