South Korea’s Fair Trade Commission (KFTC) has reportedly launched an investigation into HYBE and ADOR following a complaint filed on behalf of former NewJeans member Danielle. The case has drawn significant public attention, with supporters expressing solidarity as the legal dispute continues to unfold.
Attorney Jung Jong-chae announced through his blog June 21, 2026, that his law firm had submitted a complaint to the KFTC alleging abuse of market dominance and unfair trade practices by HYBE and ADOR. According to Jung, the commission decided to proceed with an investigation after reviewing the complaint and supporting materials.
The complaint argued that Danielle was treated differently from the other NewJeans members despite being involved in the same contract dispute. According to her legal team, ADOR terminated only Danielle’s contract and pursued approximately ₩33 billion (around US$24 million) in contractual penalties as a partial claim, with potential total damages reportedly exceeding ₩100 billion (about US$73 million).
The filing argued that such claims were disproportionate and could have a chilling effect on artists considering legal challenges against their agencies. According to the filing, the actions taken against Danielle were not solely aimed at recovering losses. Instead, her legal representatives argued that the measures could discourage artists from challenging management companies and may have wider effects on artist mobility within the industry.
Another key issue raised in the complaint concerned the standard exclusive management contract commonly used in the entertainment business. Danielle’s legal team argued that penalty clauses based on gross revenue rather than actual profit can result in compensation claims that greatly exceed an agency’s real losses.
The complaint also claimed that HYBE held a significant position in the K-pop market through its network of affiliated labels and business operations. Danielle’s representatives argued that such large contractual penalties imposed by major companies could make it harder for artists to move between agencies and for smaller firms to attract talent.
The KFTC’s decision to begin a formal review does not mean that HYBE or ADOR have violated competition laws. The commission has not reached any conclusions, and the case remains under examination.
The complaint additionally references a previous court ruling involving an entertainment company and excessive damages claims. They argue that contractual rights exercised by agencies can, under certain circumstances, raise competition law concerns.
Following reports of the KFTC review, many fans voiced support for Danielle on social media. One fan wrote,
“I hope Ador is severely punished and pays for all the evil, injustice and cowardice they are doing against Danielle. NEWJEANS IS FIVE. JUSTICE FOR DANIELLE.”
Similar messages appeared across online platforms, with supporters praising Danielle and the NewJeans members for standing firm despite the risks. Fans said the group chose to speak up at the peak of their careers, hoping to create positive change for future idols and trainees. Many called their actions courageous and inspiring.
Others said Danielle and the NewJeans members are pushing for changes that could benefit artists across the industry. Fans continued to voice their support for Danielle and expressed hope that the group will receive justice.
ADOR reduced its claim from ₩43 billion to ₩33 billion in ongoing Danielle lawsuit
On December 29, 2025, ADOR announced that Danielle’s exclusive contract had been terminated and confirmed that she would no longer continue as a member of NewJeans. The agency stated that the remaining four members of the group would carry on their activities under the company.
At the time, ADOR said the decision was based on what it described as an irreparable breakdown of trust between the company and the singer. The agency alleged that Danielle had entered into conflicting agreements and taken part in entertainment-related activities without its approval, actions it claimed violated the terms of her contract. ADOR stated that it had formally notified her of the termination and determined that their working relationship could not continue.
The company subsequently filed a lawsuit seeking damages from Danielle, one of her family members, and former ADOR CEO Min Hee-jin. The agency alleged that they played a role in the group’s departure from the agency and delayed efforts to restore the group’s activities under the label.
According to a report by MyDaily on June 4, 2026, ADOR originally sought approximately ₩43.1 billion (around US$31.4 million) in compensation. However, after changing its legal representatives and reassessing the case, the company revised the amount to about ₩33.09 billion (roughly US$24.1 million), reducing the claim by nearly ₩10 billion.
Reports also stated that the agency pursued provisional asset seizures during the legal proceedings. Courts approved temporary attachment orders covering certain real estate assets linked to Danielle’s family and Min Hee-jin, restricting the disposal of those properties while the lawsuit remains ongoing.
The investigation into HYBE and ADOR comes amid several ongoing disputes related to NewJeans. These are including civil litigation involving the group’s contracts and separate legal matters involving former ADOR CEO Min Hee-jin.
Industry organizations have also commented on aspects of the broader conflict, calling for transparency and adherence to established industry practices. Meanwhile Danielle’s legal team has stated that her ultimate goal is to return to activities with Minji, Hanni, Haerin, and Hyein as NewJeans.
Edited by Adrija Chakraborty