NewJeans contract lacks minor protection clauses and contains controversial penalty and image rights terms, NYT reports
An analysis of the exclusive contract signed by NewJeans with ADOR in 2022 reveals the absence of mandatory minor protection clauses and the inclusion of restrictive behavioral and image rights provisions.
A report from the NYT states that the exclusive contract signed by NewJeans with ADOR, a subsidiary of HYHY, in 2022 prior to their debut, lacks minor protection clauses and extensively restricts the artists' behavior and image rights. After obtaining the contract and comparing it with the government-provided standard exclusive contract, the NYT reported that clauses guaranteeing the rights to health, learning, sleep, and rest were missing, while provisions prohibiting "insincere attitudes," "neglect of self-management," and "inappropriate romantic relationships" were included, along with restrictions on statements that defame the company's reputation.
Absence of Minor Protection Clauses
The contract obtained by the NYT entirely omitted the language found in the government's standard exclusive contract that guarantees the rights to health, learning, sleep, and rest for minor entertainers. While the standard contract includes regulations to limit excessive exposure or long working hours, these protective regulations were missing from the NewJeans contract. Conversely, the contract included clauses prohibiting "insincere attitudes," "neglect of self-management," and "inappropriate romantic relationships," and restricted statements that defame the company regardless of their truthfulness. Experts assessed that such clauses could expand the agency's discretion in determining contract violations.
Beauty Expenses and Penalty Calculation Method
The contract contained a provision requiring members to reimburse a significant portion of beauty-related expenses incurred during their trainee period, such as plastic surgery, skin care, and body shaping. HYBE explained that they do not force plastic surgery and do not recommend procedures against an individual's will. The method for calculating penalties also became a point of controversy. The contract stipulates that the monthly average revenue is calculated based only on the months in which actual revenue was generated, which is then multiplied by the remaining months of the contract to determine the penalty. Critics pointed out that by excluding months with no revenue, the average monthly revenue increases, potentially enlarging the scale of the penalty. HYBE countered that the penalty regulations comply with industry standards and that because the members generate revenue every month, the actual penalty will not increase significantly.
Rights to Use Image and Voice After Contract Termination
The contract includes a clause allowing ADOR to continue commercializing or licensing the members' images, voices, and music to third parties even after the contract expires in 2029. The NYT analyzed that this clause could also apply to AI-based voice cloning and chatbot production. However, opinions were also presented that the legal validity of this clause is unclear. It was also confirmed that the agency can reconfigure and sell NewJeans' music after the contract ends and may lower the revenue distribution ratio paid to the members in that process.
Legal Response and Future Situation
NewJeans declared the termination of their exclusive contracts with ADOR in November 2024, but in March 2025, the court ruled in favor of ADOR, recognizing the validity of the contracts. HAERIN, HYEIN, and HANNI have confirmed their return to ADOR, while MINJI is currently discussing her return. DANIELLE's contract with ADOR was terminated last December, and a lawsuit for damages is currently ongoing. HYBE emphasized that the contracts were legally concluded and that the government's standard contract is a recommendation without legal binding force. Furthermore, they stated that the members' parents consented to the contract adjustments and that they did not force the cessation of studies or cause disadvantages due to rest.
Comparison Table: Standard Contract vs. NewJeans Contract Key Provisions
| Provision | Government Standard Exclusive Contract | NewJeans Exclusive Contract |
|---|---|---|
| Guarantee of health, learning, sleep, and rest rights | Included | Excluded |
| Limitation of excessive exposure and long working hours | Included | Excluded |
| Behavior and romantic relationship restriction clauses | No restrictions | Prohibition of 'insincerity, neglect of self-management, and inappropriate romantic relationships' |
| Beauty expense burden | None | Obligation for members to reimburse |
| Penalty calculation method | Monthly average revenue × remaining months | Monthly average revenue (reflecting only months with revenue) × remaining months |
| Use of image and music after contract termination | Rights terminate | Can continue until 2029 |
Future Schedule and Plans
HYBE is continuously stating its position regarding the contract and explains that there will be no further adjustments based on compliance with relevant laws. ADOR is proceeding with legal procedures regarding the existing contract dispute, and whether new exclusive contracts will be signed is expected to be determined based on each member's return and direction of activities. Moving forward, attention is focused on external monitoring of the contract contents and whether government guidelines will be applied.
Covers K-pop for KSW Journal, and also writes about Culture and K-Variety.
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