The ‘Harsh Contract’ for NewJeans obtained by the NYT···Minor-protection clauses removed, cosmetic surgery costs borne by members - 경향신문
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Girl group NewJeans attends a press conference on the termination of their exclusive contract held at SpaceShare Samseong Station Center in Gangnam-gu, Seoul, on the afternoon of the 28th. From left: Haerin, Danielle, Minji, Hanni, Hyein. Photo by Kwon Do-hyun
The New York Times reported that the exclusive contracts the NewJeans members signed with ADOR, a label under HYBE, when they were minors contained unfair terms, including the omission of clauses to protect minors.
The New York Times (NYT) reported on the 5th (local time) that, after obtaining and analyzing the contract between NewJeans and ADOR, a HYBE label, it found numerous provisions that infringe the rights of the members, including the absence of minor-protection clauses, the shifting of cosmetic procedure costs, behavioral restrictions, the method of calculating penalties, and post-termination provisions on portrait rights.
Kyunghyang Shinmun reporting confirmed that drafting this contract, as well as contracts for labels under HYBE, was handled by the HYBE legal team.
The contract obtained by the NYT is the exclusive agreement signed in 2022, when the five NewJeans members were 14-17 years old. After review by five legal experts, Noh Jong-eon, a Seoul-based entertainment attorney, called it “an unusually aggressive contract”.
The contract lacked clauses protecting the rights of minor entertainers. The Standard Exclusive Contract for Popular Culture Artists guarantees performers physical and mental health, the right to learn, and rights to sleep and rest, and bars forcing excessive exposure or long hours of activity. However, the NewJeans contract did not include such protections. Experts noted that without such clauses, a minor singer may find it difficult to raise objections to excessive training or activity.
Citing a source, the NYT reported that during their trainee period it was common for NewJeans members to practice until 2 a.m., and even rest time was not guaranteed. Four of the five members left school. HYBE countered that it complied with child-protection laws and never forced the members to stop their studies.
NewJeans member Hanni Pham sheds tears while delivering her final remarks at the Environment and Labor Committee audit held at the National Assembly on the afternoon of the 15th. 2024.10.15 National Assembly Photo Press Corps
The contract also required the members to later repay a significant portion of the costs spent on cosmetic surgery and skin care during their trainee days. Citing two sources, the NYT reported that before debut the members were photographed from multiple angles and some were encouraged to undergo procedures. HYBE stated that it did not demand cosmetic surgery or recommend procedures against the will of the members.
There were also many clauses restricting member conduct. The contract included vague terms with unclear standards such as ‘insincere attitude’, ‘inappropriate dating’, and ‘neglect of self-management’. It also contained a clause barring public statements, regardless of truth, if the content could damage the company reputation. Experts viewed such wording as allowing the company to expand excessively the grounds on which it could claim a breach.
Another problematic clause was the method of calculating penalties by selecting only the months in which revenue occurred rather than using average monthly revenue. Under the standard contract, penalties upon breach are calculated by multiplying the average monthly revenue by the remaining contract term, but the NewJeans contract reflected only months with actual revenue, which the NYT said could inflate the penalty. HYBE argued that because the members generate income every month, the actual calculated amount would not differ.
There was also a clause allowing use of members names, likenesses, and voices even after the contract ended. While the standard contract provides that rights to use name, likeness, and voice end when the contract ends, the NewJeans contract allowed ADOR to continue using or licensing those rights to third parties after the contract expiry in 2029. Use of artificial intelligence for voice cloning and chatbot creation was included. Experts noted, however, that it is uncertain how far such clauses would be upheld in actual legal disputes.
The NYT added that, according to its reporting, the terms were effectively non-negotiable. In January 2022, when one member mother requested changes, an ADOR vice president replied, “If you do not agree to the revisions, it would be better to reconsider the contract itself”. The parents of all five members signed the contract.
The NYT criticized child exploitation in the K-pop industry, commenting, “Despite years of promised sweeping reforms and government involvement, even NewJeans, the most successful group of the moment, has seen no change”.
This report comes amid an ongoing dispute over the exclusive contract between NewJeans and ADOR. In October 2024, at a National Assembly audit, member Hanni testified that she had been treated unfairly within ADOR, and in November that year the group held a press conference to declare termination of the exclusive contract. ADOR maintained that the contract was valid and pursued legal action, and in March the following year the court granted an injunction restricting independent activities by the members. Some members expressed an intention to return to ADOR that November.
In December last year, ADOR terminated its exclusive contract with Danielle and filed a damages lawsuit against Danielle and her family, among others. The company cited refusal to work, unauthorized independent activities, and contracts with third parties. Danielle's side argued this was retaliation over the dispute and filed a complaint with the Korea Fair Trade Commission.
