New Jeans Contract Dispute: Penalty Estimate Between 450 to 620 Billion Won

Written On: November 25, 2024

Last Updated: November 25, 2024

A recent report revealed the staggering financial implications of terminating the exclusive contract of K-pop group New Jeans with Adore. According to Chosun.com, the estimated penalty ranges between 450 billion and 620 billion won. This estimate was reportedly discussed by Adore’s former CEO Min Hee-jin and the company’s vice presidents during a meeting in March.

Details from Internal Discussions

Records of their conversation came to light during an injunction trial where Min Hee-jin sought to block Hive from exercising voting rights. During the trial, Min referred to these calculations as a “rough method” to determine Adore’s corporate value.

In the meeting, Vice President A initially estimated the penalty using an average monthly sales figure of 200 million won per member. Based on this, the total penalty for the five members was calculated to be around 62 billion won.

Vice President B argued that they should instead set the average monthly sales per member at 2 billion won, significantly increasing the projected penalty. Vice President A recalculated and stated that considering sales figures, they could set the penalty per member between 124 billion won. This pushed the overall penalty for the five-member group to an enormous 620 billion won.

Min Hee-jin appeared to downplay the initial estimate of 62 billion won, prompting further debate during the meeting. These calculations factored in New Jeans’ remaining contract period of 62 months, as their standard 7-year contract extends until 2029.

New Jeans Pushes Back

Amid these revelations, tensions between New Jeans and Adore have escalated. On November 13, the group sent a certified letter to Adore highlighting several grievances. These included alleged workplace bullying, unauthorized photo leaks, and improper conduct by a Hive employee who reportedly disparaged the group.

New Jeans demanded corrections on six specific violations. They warned that failing to resolve these issues within two weeks would leave no choice but to terminate their exclusive contract. The group emphasized that restoring trust would be impossible without addressing their concerns.

Industry Implications

The disclosed penalty figures reflect New Jeans’ immense market value and commercial success since their debut in July 2022. With about five years remaining on their contract, the potential financial loss for Adore underscores how lucrative idol group contracts can be. However, the legal and ethical disputes surrounding the group’s management also highlight deeper issues in the K-pop industry.

As the situation develops, it raises important questions about the treatment of artists and the power dynamics within entertainment companies.

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Kavita Mishra

Kavita Mishra is a dynamic writer and passionate Korean entertainment enthusiast, combining her love for K-pop and K-drama with a flair for storytelling. With a keen eye for the latest trends, Kavita crafts articles that capture the pulse of K-pop idols, chart-topping hits, and the most buzz-worthy dramas taking over screens worldwide.