HYBE says it poured $14.4M into NewJeans, claims each member received $3.4M in settlement
South Korean leisure large HYBE revealed that it has invested KRW 21 billion ($14.4 million at present change charges) into creating Okay-pop group NewJeans, and that every member allegedly acquired settlement funds of about KRW 5 billion ($3.4m) amid their authorized dispute.
That’s in response to statements made throughout a court docket listening to on Friday (March 7), as reported by information retailers out of South Korea.
The information comes as HYBE subsidiary ADOR sought an injunction in Seoul Central District Court docket to stop the five-member woman group, who just lately rebranded as NJZ, from pursuing impartial actions with out firm approval.
“Greater than 50 workers members — together with stylists, choreographers, video administrators and managers — had been devoted completely to NewJeans’ success from their trainee days,” ADOR’s attorneys had been quoted by The Korea Herald as saying.
“HYBE invested KRW 21 billion in ADOR in two separate rounds, an unprecedented quantity for a single group.” Whereas ADOR operates as a label beneath HYBE, the subsidiary’s first and only Okay-pop group is NewJeans.
ADOR’s attorneys added: “HYBE invested KRW 21 billion received into ADOR, and NewJeans has been producing vital income since 2023. It defies logic to counsel {that a} profit-driven firm would sabotage one in every of its largest earners.”
ADOR’s representatives additional argued that every NJZ member has acquired settlements of roughly KRW 5 billion , exhibiting that the corporate fulfilled its contractual obligations, AllKPop reported.
“HYBE invested KRW 21 billion received into ADOR, and NewJeans has been producing vital income since 2023. It defies logic to counsel {that a} profit-driven firm would sabotage one in every of its largest earners.”
ADOR’s Authorized Staff
“The important obligations of an unique contract are to supply alternatives for leisure actions and to settle earnings. ADOR has fulfilled these obligations, which is why NewJeans has grow to be a worldwide star. Every member has acquired a settlement of KRW 5 billion,” ADOR’s authorized crew reportedly mentioned throughout the listening to.
ADOR has expanded its authorized motion to request a whole ban on the group’s leisure actions following their rebranding announcement and plans to carry out at ComplexCon Hong Kong later this month.
Previous to the name change, NewJeans members in December 2024 mentioned persevering with their relationship with ADOR would expose them to additional injury. “We’re more likely to endure much more hurt sooner or later,” the members stated. ADOR maintains their contracts stay legitimate till July 31, 2029, even after NewJeans held a press conference in November 2024 to announce that they’d left ADOR.
NewJeans’ authorized crew has mentioned the dispute facilities on an alleged breach of belief.
“HYBE’s intensive media play (towards NewJeans), its plans to interchange NJZ with a brand new group, the Illit plagiarism controversy, and ADOR’s collaboration with Dolphiners Movie — none of those incidents occurred to different HYBE artists,” NewJeans’ attorneys had been quoted by Korea Herald as saying.
NewJeans additionally accused HYBE, which additionally manages international superstars BTS, of orchestrating a media marketing campaign towards them and planning to interchange them with one other act.
“The core challenge right here is that HYBE and ADOR repeatedly sidelined and ostracized NJZ, intending to interchange them with one other group,” the members reportedly mentioned. “ADOR is now demanding that we stay beneath their management till the court docket guidelines on contract termination. This primarily forces us right into a ‘slave contract’ the place we’re certain to an company that has already deserted us.”
A separate trial addressing the validity of NewJeans’ contract termination is scheduled for April 3.
“The core challenge right here is that HYBE and ADOR repeatedly sidelined and ostracized NJZ, intending to interchange them with one other group.”
NewJeans
In February, 5 commerce teams representing South Korea’s Okay-pop trade issued a warning in regards to the ongoing dispute between HYBE, ADOR and NJZ, saying the case may destabilize the trade if it units a precedent.
“If tampering makes an attempt succeed, Korea’s leisure administration trade will collapse,” the teams mentioned in a press release, as quoted by The Korea Instances.
The most recent developments come as HYBE just lately reported that it swung to a net loss of KRW 3.38 billion ($2.48 million on the common change fee for 2024) in 2024, versus a web revenue of KRW 183.45 billion in 2023, amid rising prices and weak point in its recorded music section.
BTS, as soon as HYBE’s high earner, accounted for lower than 20% of the corporate’s revenues in 2024.
“The decline in profitability was primarily attributable to BTS‘ non permanent break, a shift within the artist gross sales combine on account of new debuts, and strategic investments in infrastructure and new progress companies like Weverse and gaming,” HYBE mentioned in February.
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