”Ultimatum” ”NewJeans”, if ”HYBE leaves”, how much will the penalty be? ... The industry is also tense

"What we want is a former ADOR with management and producing integrated under CEO Min Hee Jin. The reason we are making this request is to resolve this without fighting with HYBE.
Therefore, Chairman Bang and HYBE should make a wise decision to bring back former CEO Min by the 25th (of this month)." (NewJeans/Minzy)
Korean girl group NewJeans has filed a lawsuit against HYBE and Bang Si Hyuk, Chairman of ADOR, against Min Hee Jin, former CEO of ADOR.
In response, some in the legal profession speculated that the 25th was the date they set for the deadline, and that they were even laying the groundwork for the termination of the exclusive contract.
On the 13th (today), according to the legal community, the members of "NewJeans" conveyed their demands and applied for a provisional injunction to suspend the exclusive contract with HYBE, and they are planning to file a lawsuit.
In light of the fact that HYBE has expressed its intention to sue the company, it is unclear what is at fault, and it is believed that there is little chance that NewJeans will win the lawsuit.
Attorney Song of the law firm said, "Exclusive contracts can only be terminated in cases that amount to a breach of contractual obligations, and these cases are mainly those involving unpaid revenue or personal defamation.
"In rare cases, a 'de facto break-up' may be accepted as a reason, but in this case, it is difficult to think that NewJeans falls under all of these," said a Korean
The news was released through a media interview. However, the possibility of NewJeans paying a penalty and terminating the contract cannot be ruled out. However, the girls' contract with ADOR is about to expire.
Given that there are five years left, the penalty is estimated to reach several hundred billion won (tens of billions of yen).
The specific terms of the contract for "NewJeans," which debuts in 2022, have not been disclosed, but
The FTSE Standard Exclusive Contract document stipulates that the standard for terminating a contract is to set the penalty at an amount equal to the average monthly sales over the previous two years multiplied by the number of months remaining in the contract term.
ADOR recorded sales of approximately 190 billion won (approximately 19 billion yen) over the 24 months from the second half of 2022 to the first half of the year.
A's sales are entirely dependent on "NewJeans," so this can be considered as the sales of "NewJeans." Based on the Fair Trade Commission's standard Exclusive Contract,
If we do a rough calculation, the penalty will be at least 300 billion won (about 30 billion yen). In addition, even if "NewJeans" becomes independent, the group name and the intellectual property rights related to them (
Another issue is that the group will have to abandon the IP of "NewJeans" if they become independent, as ADOR and HYBE own the IP for "NewJeans."
In the end, if we only consider the circumstances under which they would return, it will not be easy for them to leave HYBE.
Previously, NewJeans held an emergency LIVE STREAM on YouTube on the 11th of this month, and Chairman Bang and HYBE announced that they would return ADOR to normal by the 25th.
"We have doubts about whether HYBE is really the agency for NewJeans," said NewJeans. "It's already been half a year since we last had a contract with HYBE, and we're not sure if they're the agency for NewJeans," the group said.
"The tiresome rumours about 'New Jeans' are continuing nonstop and I find it very unpleasant," he said, demanding that Min, an in-house director, be reinstated as CEO.