Legal Proceedings in the NewJeans Agency Dispute
The ongoing legal battle between NewJeans’ agency, ADOR, and video production company Dolphiners Films has taken a new turn as former ADOR CEO Min Hee-jin appeared as a witness in the case. This marks the first time Min has directly participated in a legal matter related to the dispute, which also involves separate litigation over put options.
The Seoul Central District Court Civil Division 62, presided by Judge Lee Hyun-seok, held the third hearing on the 1.1 billion won damages lawsuit filed by ADOR against Dolphiners Films and music video director Shin Woo-seok. The trial stems from Dolphiners Films’ release of the director’s cut video for NewJeans’ “ETA” music video on its YouTube channel last August. At that time, ADOR raised concerns about the authority of Director Shin to post videos owned by the company on his channel.
In response, Director Shin deleted all NewJeans-related content from his unofficial fandom channel, the “Ban Hee-soo Channel.” Subsequently, he filed a criminal complaint, claiming that ADOR’s statement regarding an “unauthorized release of the director’s cut” damaged his reputation. In turn, ADOR initiated a damages lawsuit against Dolphiners Films.
During the hearing, both parties engaged in intense debate over whether Director Shin had the right to post the video and whether former CEO Min provided special favors to the director. Min testified that the separate posting of the “ETA” music video was verbally agreed upon. He also mentioned that it is common industry practice for music video directors to share completed works on personal social media or websites.
ADOR challenged Min’s claims by referencing the previous ruling on the exclusive contract dispute between NewJeans and ADOR. The court had previously ruled that there was no evidence to suggest that Dolphiners Films possessed unique capabilities that made it irreplaceable. Additionally, the court found that ADOR did not violate significant obligations merely due to disputes with Dolphiners Films.
Based on this, ADOR questioned Min about the rejection of NewJeans’ claims at both the first and second instances of the preliminary injunction and main trial. Min confirmed that he was aware of the ruling. ADOR then raised suspicions about potential favoritism towards Dolphiners Films, citing the 3.3 billion won paid by ADOR in 2023 for four music videos, which accounted for 25% of the company’s annual revenue.
The company also highlighted that Dolphiners Films had an operating profit of around 700 million won in 2021 but needed to achieve cumulative profits of 18 billion won by 2026 under a stock purchase agreement with Kakao Entertainment. ADOR questioned whether Min directed excessive work and set high unit prices to help Dolphiners Films meet these targets.
When asked if he was aware of the shareholder agreement details, Min stated that he was not. However, he confirmed that he received the contract from Director Shin, explaining that he did not review it and passed it along to Deputy CEO A.
Legal experts noted that stock purchase agreements typically include confidentiality clauses, preventing non-signatories from knowing the contract details. A source from the legal industry stated that the fact that Director Shin shared the contract with Min could lead to future controversies.
Key Points from the Trial
- Former ADOR CEO Min Hee-jin testified in the lawsuit involving Dolphiners Films and music video director Shin Woo-seok.
- The trial centers on the unauthorized release of the “ETA” music video and potential conflicts of interest.
- ADOR disputed Min’s claims, referencing previous court rulings on the exclusive contract dispute with NewJeans.
- The company raised concerns about the financial relationship between ADOR and Dolphiners Films, including the payment of 3.3 billion won for music video production.
- Min acknowledged receiving a contract from Director Shin but claimed he did not review it, passing it along to another executive.
- Legal experts emphasized the importance of confidentiality in stock purchase agreements and warned of potential future issues.
Implications for the Case
The testimony of Min Hee-jin adds another layer of complexity to the ongoing legal proceedings. His statements about the industry practices of music video directors and his role in the company’s dealings with Dolphiners Films could significantly impact the outcome of the case. As the trial continues, the court will need to carefully evaluate the evidence presented by both sides, including the financial transactions and the potential for conflicts of interest.
The case highlights the intricate relationships within the entertainment industry and the legal challenges that arise when companies and individuals are involved in multiple disputes. With the involvement of high-profile figures like Min Hee-jin and the potential for further controversies, the situation remains closely watched by industry observers and legal analysts alike.