Hybe defends NewJeans' contracts amid scrutiny over leaked agreements

Ador and its parent company Hybe defended NewJeans' exclusive contracts on Friday following a US media investigation that raised questions about protections for minors, financial penalties and restrictions imposed on the members.

The response came after The New York Times published an investigation Thursday examining contracts signed in 2022, when all five NewJeans members were minors. The report raised concerns about termination penalties, surveillance, the use of artists' voices and likenesses, and the extent to which the members and their families could influence the agreements.

In a statement to local media, Hybe maintained the contracts complied with South Korean legal standards and were finalized after extensive negotiations involving the members, their parents and legal representatives.

"All Hybe labels enter into the government-standard supplementary agreement for minors with their trainees,” Hybe said. “These agreements include provisions protecting personal rights, the right to sleep, the right to education, and the right to rest, among others. They remain in effect until the individuals reach adulthood."

According to Hybe, the members and their families were provided draft contracts on Jan. 7, 2022. Nearly three months of negotiations involving written correspondence, proposed revisions and legal reviews followed before the agreements were signed in April.

Hybe also cited a Seoul High Court ruling that recognized the contracts took effect following sufficient discussions between the parties.

Addressing concerns about financial penalties for early termination, Hybe acknowledged that the agreements used different wording from the government's standard exclusive contract but argued that the calculation method produced the same financial outcome.

The company explained that penalties were calculated based on periods during which the group generated revenue and excluded the predebut period. Hybe maintained the provision was effectively equivalent to the government's standard formula and said the Seoul High Court had found no problems with it.

Hybe also denied that the contracts permitted unauthorized use of members' voices and likenesses, including AI-generated content, saying individual consent was required. It clarified that security cameras were installed only in common areas for safety purposes and that decisions concerning education were left to the artists and their families.

Addressing the role of former Ador CEO Min Hee-jin, who has been involved in a prolonged dispute with Hybe, the company said she had led the contract negotiations in 2022.

"Supporting evidence was provided to The New York Times demonstrating that the NewJeans contracts were negotiated, finalized, and signed by Min Hee-jin, then-CEO of ADOR; the vice president appointed by Min; the individual members and their parents; and legal representatives for certain members," Hybe said.

However, Min’s representatives rejected Hybe’s claims Friday, saying the parent company’s legal team had led the drafting and revision of the contracts. They argued that although Min signed the agreements as Ador's then-CEO, the contracts could not have been finalized without Hybe’s approval, as Ador had no independent legal department at the time.