On November 8, the YouTube channel 'Kang & Park Law Office'(강앤박변호소) released a video titled "Why We Might Not See NewJeans Until 2027."
In the video, attorneys Kang Ho-seok and Park Geon-ho explained, "The first trial court concluded that the reasons NewJeans cited for terminating their exclusive contract were not legally valid. The court explicitly stated in the ruling that ADOR had not breached the contract."
The lawyers further commented, "Contracts are not to be taken lightly. If NewJeans appeals, they are likely to lose again because there is no decisive evidence to overturn the first trial's decision."
They also mentioned the trial involving former ADOR CEO Min Hee-jin. "The first trial's outcome has negatively impacted Min's 26 billion won put option case. Initially, it seemed favorable for Min, but the first trial raised suspicions of tampering. Under civil procedure law, findings from one court can influence another, making it difficult to dismiss the first trial's results in the put option case."
Additionally, they warned, "If NewJeans pursues the case to the Supreme Court, they may be unable to perform until 2027. Subsequently, HYBE could file a damages lawsuit."
Despite the first trial loss, the financial burden on NewJeans is not substantial. The lawyers noted, "This is a contract dispute, not a damages lawsuit, with a claim amount of around 250 million won. Court fees, delivery charges, and attorney fees total 12,262,000 won. Although both sides hired large law firms, Kim & Chang and Shin & Kim LLC, the court sets attorney fees, which ADOR will cover according to the standards."
However, they also highlighted the potential financial risk for Min Hee-jin if she loses the put option lawsuit, which involves a claim amount of 26 billion won.
On October 30, the Seoul Central District Court's Civil Agreement Division 41 ruled in favor of ADOR in the lawsuit confirming the validity of the exclusive contracts with NewJeans members Minji, Hanni, Daniel, Haerin, and Hyein.
Choi Ji-ye, TenAsia Reporter wisdomart@tenasia.co.kr