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Why K-Pop Group NewJeans—Or NJZ—Is Brazenly Taking on Its Former Label

BBG News

2024 found K-pop star Lee Hyein, for lack of a better term, perplexed. In mere months, she and her bandmates from NewJeans transitioned from being one of the industry’s top-selling acts to a group of unconventional artists, embroiled in a heated disagreement with their label following an unexpected departure.

As I shared during a recent conversation with TIME, there have been moments where people around me would effortlessly alter their viewpoint, regarding me as a youngster when it benefited them, and then demanding adult-like behavior from me when it was more advantageous for them. Let me tell you, those were some of the most challenging periods in my life.

In November, Hyein, together with bandmates Minji (Kim Minji), Danielle (Danielle Marsh), Haerin (Kang Haerin), and Hanni (Phạm Ngọc Hân), decided to end their agreement independently with their previous record label and management company ADOR, which is a subsidiary of the powerful K-pop entity HYBE, known for BTS. This move was unusual and caused ripples throughout the South Korean entertainment sector, as the group’s members have alleged mistreatment, discrimination, and harassment in the workplace. However, ADOR has denied these claims.

It came as a shock to many when, in February, the members of the group, all under 21, announced they had adopted a new group name—NJZ—and planned a comeback performance for March 23rd at the ComplexCon festival in Hong Kong. Haerin, speaking in Korean, emphasized that the group’s core remains unchanged, but by rebranding as NJZ, “we now have more creative liberties and a wider range of artistic expression.

Despite their successes, this group hasn’t achieved it all without facing challenges. Since their launch in August 2022, they’ve made waves by embodying the style and sound of music and fashion from the 2000s, with songs such as “Super Shy,” “OMG,” and “Ditto” gracing the Billboard Hot 100 charts. They’ve also broken a Guinness World Record for streams and have become a preferred representative for major global brands like Coca-Cola, Apple, and the Powerpuff Girls. However, their split from ADOR could negatively impact the company, as the K-pop industry grapples with declining international sales of albums in 2024, which saw HYBE lose nearly half a billion dollars in market cap when they departed in November.

In January, ADOR filed a preliminary injunction at a Seoul court, initially aiming to halt the five members from engaging in new promotional activities without the management company’s approval. A month later, after the group rebranded, the demand was expanded to include a stop on new music releases and international performances. The court granted this injunction just before their scheduled performance. ADOR expressed their dedication to supporting the five members, and will attend their ComplexCon performance. However, the members themselves have announced their intention to contest the court’s decision.

The five individuals shared their sentiments exclusively with TIME, expressing their disappointment over the court ruling. However, they acknowledged that they weren’t under the illusion that the problems plaguing the K-pop industry would be instantly resolved.

Given all we’ve experienced up until now, this appears to be another milestone along our path,” I mused. “Perhaps this is the status quo in Korea, but it fuels our conviction that transformation and development are crucial. It seems like Korea is nudging us towards becoming agents of change.

The previous year has been a challenging period for K-pop, marked by sluggish global sales and a series of scandals that rocked the South Korean entertainment industry. Although the NJZ controversy was highly publicized, it was not the only one; there were other incidents like BTS member SUGA’s drink-driving case and SM Entertainment terminating the contract of former NCT member Taeil following sexual assault allegations.

She served as a protective barrier against many of the struggles we now face.

For quite some time now, the K-pop industry has been under scrutiny due to allegations of agencies not treating their employees and musicians with enough compassion. The field is also marred by a high number of idol suicides and demanding work environments that lead to success. Some artists have managed to escape their labels to gain more autonomy and freedom. As Hanni put it, “There’s an inherent structural issue in K-pop as a whole, where companies often don’t regard their artists as real people but instead see them as commodities.

NJZ has consistently brought up allegations of maltreatment, and these issues have been highlighted on several occasions. The group’s lawyers have referenced specific instances in an email sent to TIME. Among the claims are that a representative from HYBE PR attempted to minimize the group’s accomplishments by contacting a local journalist, a manager was accused of instructing members of another band to disregard Hanni when she greeted them, which aligns with the group’s assertions that HYBE executives, including Chairman Bang Si-hyuk, have ignored them. Additionally, the group accused HYBE of manipulating media just before their comeback in April 2024. During their interview with TIME, Minji also mentioned an attempt by HYBE to prevent the group from wearing memorial ribbons to pay tribute to victims of the December 2024 Jeju Air crash.

In October, Hanni appeared before the National Assembly in South Korea to speak about the alleged workplace harassment she experienced at HYBE. Kim Joo-young, who had recently taken over as CEO of ADOR (HYBE’s management agency), was also present and expressed doubt about whether there was more he could have done regarding the situation. Additionally, supporters of the group NewJeans filed a petition alleging workplace harassment on Hanni’s behalf; however, the South Korean labor ministry ultimately declined to consider it, citing the contentious reason that artists are not legally recognized as workers under current laws.

Caught off guard by the recent turn of events, we’ve decided to hold a press conference on November 28th. “We didn’t foresee any of this unfolding,” I find myself saying. Minji, who had been quite vocal in our previous press conference in November, shared with TIME (in Korean): “Ever since our debut, we’ve encountered numerous hurdles and intrusions from them. It’s only now that we can openly discuss these issues.

During the course of our discussion, Danielle suddenly begins to cry. “I’m sure there are countless instances reminiscent of ours,” she remarks. “It’s incredibly sad to even imagine someone else enduring a predicament such as this.

A unique court case concerning the legality of a five-year contract between a company (ADOR) and an entertainment organization (ADOR), due to expire in 2029, has been scheduled for April 3. This legal process could last several years. Some professionals within the industry have expressed concerns that if New Jersey Zoo (NJZ) were to win this lawsuit, it might deter future investments in idol groups because it could establish a pattern of unilaterally terminating contracts. These industry leaders argue that agencies are being unfairly treated due to their significant financial commitments towards the artists’ development. Initially, ADOR invested approximately 21 billion Korean won (around $14 million) for the group’s debut, and they claim in court that around 12 billion won (about $8 million) has been paid out to NewJeans members as settlement since October 2023. In a statement to TIME, ADOR clarified their intention is “not to impede the artists’ careers but to ensure they can continue their activities under our existing contractual agreement.

However, what NJZ’s legal team is aiming for with a positive decision isn’t about causing harm to agencies. Instead, they want the five members to be released from allegedly restrictive conditions imposed by their previous label, enabling them to independently pursue their music careers. In an email sent to TIME, they emphasized that this would not negatively affect other entertainment companies or artists. They added that if a company has met its contractual obligations and adequately protected its artists, there would be no basis for the artist to win a lawsuit against them. Specifically, Minji stated that their requests from HYBE and ADOR were neither unusual nor unreasonable.

From a dedicated fan’s perspective, I’ve been closely following the ongoing debate among legal professionals regarding the potential consequences of HYBE’s reported decision to terminate NewJeans’ contract. While one lawyer suggests that this move could strengthen NewJeans’ case for unilaterally ending their contract due to HYBE’s actions, another legal expert is not so sure if there are enough grounds for such a termination.

It’s essential to note that if NewJeans were to lose in court, they might face significant financial losses. According to experts, the penalties for breaching their contract with ADOR could amount to an astounding 620 billion won (approximately $420 million). As a fan, this potential financial burden is concerning and I hope that a fair resolution can be reached without such severe consequences.

In response to TIME’s inquiry, ADOR expressed regret over the legal dispute and stated that any miscommunications, allegedly caused by past management, can be clarified and rectified once the group returns to the label.

However, it seems that the bond between NJZ and ADOR might be irrevocable, as the group appears to be handling business affairs independently. Hanni has denied rumors about signing with a new record label, but clarified, “We are seeking an agency to assist us… someone to act as an intermediary to facilitate communication with others.

Apart from dedicating all their energy towards crafting their comeback, the group formerly known as NewJeans, now NJZ, hints at exploring new styles and sounds. Known for their Y2K aesthetic in music and fashion, they suggest there’s more to discover. They remain tight-lipped about specific changes, but Danielle invites fans to tune in to their live Hong Kong performance for a surprising revelation: “We aim to make it a ‘BAM!’ moment, an instant surprise.

Apart from legal matters, the five showed enthusiasm and nervousness as they discussed their future endeavors, striving for their artistic autonomy and creative liberty. They also conveyed appreciation towards their supporters, whom they continue to refer to as “Bunnies,” and to their families, who have stood by them through the dispute.

Initially, when this incident occurred, Minji found themselves wondering, “Why is this happening to me?” However, they now understand that this difficult situation has led to personal growth and introduced them to numerous remarkable individuals.

In 2023, Hanni shared with TIME that forecasting K-pop’s future would be challenging. Just under two years later, Hanni admits she didn’t anticipate finding herself at the center of K-pop’s most recent workplace scandal. “The future is uncertain,” echoes her bandmate Danielle, explaining that their group never intended to be involved in such turmoil but considers this ordeal as a valuable learning experience for them as artists.

Hanni and the girls aren’t fretting over potential long-term effects for now, as she states, “If it impacts the K-pop world, so be it; if not, it won’t, and that’s how it will turn out.” Regardless of whether they alter the K-pop industry or not, Hanni expresses pride in their achievements.

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2025-03-21 19:07

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