The New York Times reported that the members of the group NewJeans signed an exclusive contract with Ador, a subsidiary of HYBE, during their teenage years, which lacked protections for minors.
On November 5, the New York Times (NYT) disclosed its analysis of the contract signed by the five members before their debut in 2022.
At the time of signing, the members were aged 14 to 17, but the contract did not include provisions for the physical and mental health, education, or rest and sleep guarantees as outlined in government-standard contracts for minors. Additionally, there were no regulations preventing excessive exposure or long working hours.
However, the contract contained numerous clauses that significantly restricted the members' rights. It prohibited 'lack of sincerity,' 'neglect of self-management,' and 'inappropriate relationships,' and included a clause that prevented them from publicly discussing anything that could harm the company's reputation, regardless of its truth. Experts believe such language could excessively broaden the company's grounds for claiming contract violations. Entertainment attorney Noh Jong-eon described the contract as 'exceptionally aggressive.'
Furthermore, the NYT cited sources indicating that during their trainee period, it was common for NewJeans members to practice until 2 a.m., with no guaranteed rest periods. Four of the five members dropped out of school, but HYBE stated that it complied with child protection laws and never forced members to quit their studies.
Notably, the contract included a provision requiring members to repay a significant portion of the costs for cosmetic surgery and skincare treatments incurred during their trainee period. According to the NYT, members were advised to undergo procedures after having their photos taken from various angles before their debut. A representative from HYBE denied that they required surgery or suggested procedures against the members' wishes.
Another problematic clause involved calculating penalties based only on months when revenue was generated, rather than averaging monthly revenue over the contract's duration. The NYT pointed out that while standard contracts calculate penalties by multiplying the average monthly revenue by the remaining contract period, NewJeans' contract could inflate penalties by only considering months with actual revenue.
Additionally, there was a clause allowing the company to use the members' names, likenesses, and voices even after the contract ended. Typically, rights to names, likenesses, and voices expire when a contract concludes, but NewJeans' contract allowed Ador to continue using these rights or grant them to third parties until 2029. This included the potential for voice replication and chatbot creation using artificial intelligence (AI), although the legal validity of this clause remains unclear.
The NYT noted that the contract terms were effectively non-negotiable. In January 2022, one member's mother requested several changes before signing, but an Ador vice president responded that if they did not agree to the current draft, it might be best to reconsider the contract altogether. Ultimately, all five members' parents signed the contract.
HYBE stated, 'This exclusive contract is legally valid and was established through mutual good-faith negotiations,' adding that it reflects a balance between substantial protective measures for the artists and the company's need to recoup its significant initial investments.
Regarding the release of NewJeans' contract, the NYT commented, 'K-pop has long faced allegations of child exploitation, with agencies often recruiting young children and imposing years of intense training costs on them. Many stars labeled as idols have taken their own lives, and the NewJeans contract case illustrates that, despite years of promised reforms and government intervention, even one of the most successful groups today has seen little change.'
Meanwhile, NewJeans announced plans to terminate their exclusive contract with Ador in November 2024 and pursue independent activities under the name NJZ. However, a court ruled that the exclusive contract between Ador and NewJeans remains valid, leading to the return of members Haerin, Hyein, and Hanni to Ador, while Minji is in discussions about her return.
However, member Danielle was held accountable for the situation and was notified of the termination of her exclusive contract in December of last year. In April, Ador filed a lawsuit seeking approximately 33.1 billion won in damages against Danielle and former Ador CEO Min Hee-jin.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.