ADOR, the K-pop agency managing global sensation NewJeans, has terminated its exclusive contract with member Danielle and signaled it will seek substantial penalties and damages, setting the stage for one of the most financially consequential artist disputes in recent K-pop history.
In a statement released Sunday, the agency said it formally notified Danielle of the contract termination after determining it could no longer sustain the artist-management relationship.
“Danielle is a member of NewJeans and an artist under ADOR, but we determined that continuing this partnership is no longer feasible,” the company said. ADOR added it plans to pursue legal action against a member of Danielle’s family and former CEO Min Hee-jin, alleging they hold “significant responsibility” for causing the dispute and delaying NewJeans’ potential transition and return.
An ADOR official told media outlets the company will move forward through legal channels, though specifics were not disclosed. “It is difficult to provide specifics as legal procedures are forthcoming,” the official said. “However, contracts conflicting with the exclusive agreement were entered into, or independent entertainment activities were conducted. We requested corrective action, but as this was not remedied within the given timeframe, we proceeded with termination.”
On the question of financial penalties, the official said the amount will be calculated based on a “pre-determined formula” in the contract.
Industry observers have speculated that potential penalties and damages involving NewJeans could reach as high as $750 million. In a recent appearance on the YouTube channel Understanding, attorney Ahn Hee-cheol of DLG Law estimated potential liabilities for individual NewJeans members using ADOR’s 2023 financials—total revenue of about $83 million and operating profit of about $30.85 million.
Ahn calculated that penalties are generally based on average monthly revenue over two years multiplied by the remaining contract period. Applying that formula, and assuming Danielle has 54 months left on her contract, her potential liability could reach roughly $80 million. He noted, however, that courts can reduce penalties deemed excessively punitive.
The move deepens uncertainty around NewJeans’ future. Last month, all five members stated their intent to continue group activities under ADOR, but only four—excluding Danielle—ultimately renewed their exclusive contracts. It remains unclear whether the group will proceed as a quartet.
ADOR has not commented on NewJeans’ future lineup, but the case is being closely monitored as a bellwether for high-stakes contract enforcement in the global K-pop industry, where agency control, artist independence and multi-million-dollar valuations are increasingly colliding.
