ADOR, which says it is already preparing for NewJeans’ upcoming comeback, stated:
"If the exclusive contract is maintained, the members will be able to continue their entertainment activities at the highest level and avoid being labeled as celebrities who break their promises. They would also be free from penalties and compensation claims. Since ADOR is still preparing for NewJeans' comeback, we believe returning to ADOR is in NewJeans’ best interest."
They continued, "If the exclusive contract is terminated, it would cause serious harm to the members. They would lose the full support of ADOR and HYBE, and also lose their idol image. Legal disputes over penalties and compensation would follow. It would also be difficult to maintain employment for ADOR staff. The court also considered that ADOR’s very existence could be at risk if the exclusive contract is terminated."
Additionally, ADOR claimed that "In such a case, ADOR would no longer be able to train future talent, and K-pop would inevitably head toward collapse." They emphasized that "For the sake of NewJeans, for ADOR, and for the K-pop industry as a whole, NewJeans is essential."
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Regarding employment stability in the event of a subsidiary's closure, it is the parent company's responsibility and within their authority to either process resignations due to closure or transfer employees to the parent company or affiliates.
But they’re trying to force the blame onto NewJeans, as if it’s their responsibility.
Note 1: The current ADOR CEO is also serving as HYBE’s Chief Human Resources Officer, and was personally appointed by HYBE to lead ADOR after Min Heejin’s departure.
Note 2: While serving as HYBE’s Chief Human Resources Officer, the current ADOR CEO was previously suspected of forcing regular employees to sign non-disclosure agreements that allegedly contained harmful clauses.
The controversial clause in the non-disclosure agreement is the non-compete clause. HYBE imposed the following restrictions on many former employees:
- Prohibition from working for or partnering with similar or competing companies within one year of resignation
- Prohibition from establishing or operating similar or competing companies within one year of resignation
This effectively means that anyone who resigns from HYBE cannot work in the same industry, such as other entertainment companies, for a year.
The signing of this agreement was overseen by Kim Joo-young, HYBE’s Chief Human Resources Officer (CHRO), who is also the current CEO of ADOR.
In the case of ordinary employees (non-executives), non-compete clauses that offer no additional benefit are generally considered legally unenforceable and have raised concerns in the industry about violating an individual’s freedom to choose their profession.
Non-compete agreements are more commonly seen in technology-intensive fields like semiconductors, where there is a risk of technical information leaks. However, in the entertainment industry, HYBE’s enforcement of such a clause has been criticized as excessively restrictive.
In the related industry, while some roles involve confidentiality or copyright agreements, experts unanimously said that forcing non-compete agreements on non-executive employees is "unheard of and unprecedented."
They also added, "Isn’t HYBE itself a company that grew by poaching talent from other entertainment agencies?"
A labor attorney who requested anonymity stated, “It’s basically a waste of paper with no legal validity,” adding, “It appears to be a tool to oppress workers by unjustly infringing on their basic constitutional right, the freedom to choose their profession.”
The attorney continued, “From the company's perspective, in-house legal experts must have advised that the clause isn’t legally enforceable, but the fact that it was still imposed shows strong intent from the executive level.”
They concluded, “From the viewpoint of someone resigning, this would feel like pressure, almost like a tactic to prevent them from leaving the company.”
"Now that we’re in the era of girl groups selling over 1 million copies in their first week, maybe it's time to move away from the traditional 4th-generation framework and instead categorize groups like ○○○○ (YG Entertainment), ○○○○ (HYBE), ○○ (SM Entertainment), and ○○○ (Starship Entertainment) together in a new way."
They added, "I was tired of hearing the '○○○' wording for days, just ditch 'New' and start fresh."
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