ADOR has disclosed that it has invested over 30 billion KRW, approximately 22.7 million USD, to bolster the career of the K-pop group NewJeans. This revelation emerged during the initial hearing of the lawsuit concerning the contract’s validity, which took place on April 3rd.
During these proceedings, ADOR emphasized the ongoing monthly revenue streams despite NewJeans’ unilateral decision to terminate their contract. These payments encompass various sources, including advertisement fees and event compensations.
Since the beginning of 2023, ADOR has reportedly transferred around 12 billion KRW (or about 8.18 million USD) to NewJeans. The group made their debut in July 2022 with the hit song “Attention.” According to ADOR, the production costs for their initial album reached approximately 7 billion KRW (roughly 4.77 million USD), significantly exceeding the average production budget for K-pop albums, which typically ranges between 3-4 billion KRW.
ADOR Outlines Financial Investments to Address NewJeans Allegations
The lawsuit, titled ADOR vs. NJZ, was discussed at the Seoul Central District Court’s Civil Division 41, under the supervision of Judge Jeong Hoe-il. During the hearings, NewJeans alleged that the subsidiary of HYBE LABELS harbors a negative sentiment toward the group. In response, ADOR passionately defended the scale of its financial commitment to the group.
According to reports from The Bell, ADOR initially invested 5 billion KRW (approximately 3.41 million USD) to acquire full ownership of the label upon its inception. Following the separation from SOURCE MUSIC, additional contributions were made by HYBE, amounting to 10 billion KRW (around 6.82 million USD) in 2021 and another 6 billion KRW (approximately 4.09 million USD) in 2022.
This substantial financial backing serves as a pivotal piece of evidence in the ongoing legal struggle to affirm that ADOR has fulfilled its obligations as NewJeans’ management agency. The agency underscored the enormity of its investments purely for the advancement of the girl group.
Further, ADOR representatives commented on NewJeans’ prospects following the departure of former CEO Min Hee-jin, asserting that:
“While it is true that former representative Min contributed significantly to the group’s current success, suggesting that NewJeans cannot thrive without her is unfounded.”
They elaborated:
“The defendants showcased their capabilities by successfully executing a recent performance in Hong Kong independently, proving that former representative Min’s role was not singularly indispensable.”
Conversely, NewJeans accused ADOR of breaching the trust that once existed between them, particularly highlighting the significant changes in management before and after Min Hee-jin’s exit.
“The relationship of trust between the plaintiff and the defendant has irreparably deteriorated. Post-Min’s departure, the ADOR we contracted with differs fundamentally from the current ADOR under new management from HYBE,” a representative from NJZ indicated.
In light of the situation, ADOR has expressed a desire to reconcile through settlement agreements. However, NJZ’s representatives communicated the group’s current emotional state is not conducive to reaching any agreements at this time. The next hearing in this ongoing contract validity lawsuit is slated for June 5, 2025.