If NewJeans Had Continued Activities?.. ADOR vs. Hee-jin Min & Daniel, Core Issue is 'Estimated Revenue' [Star][Comprehensive]

*This content was translated by AI.

ADOR, a label under HYBE, and Daniel, a former member of the girl group NewJeans, along with ADOR Jeon (CEO) Hee-jin Min, engaged in a fierce legal battle over the criteria for calculating NewJeans' 'estimated revenue'.

On the afternoon of the 23rd, Seoul Central District Court Civil Collegiate Panel No. 31 (Presiding Judge Nam In-soo) held the fourth argument session in ADOR's lawsuit for damages filed against Daniel, his family, and Hee-jin Min.

During this session, an expert witness examination requested by the plaintiff, ADOR, was conducted, revealing sharp differences between both sides regarding the criteria for calculating 'estimated revenue' by sector that could have arisen had the exclusive contracts been fulfilled normally.

The defense side emphasized that ADOR's past sales performance resulted from operations under Hee-jin Min's directing system and argued that revenue should be calculated based on a scenario where she was absent. Additionally, the defense explained that the girl group's revenue structure differs from simple manufacturing industries, as it is achieved only when directing staff work in complete unity.

They further pointed out that since Hee-jin Min resigned and the staff who assisted her also left the company, and no successor producer has been appointed yet, generating normal sales would be difficult during this period. The defense requested the court to consider that a decline in revenue due to diminished management capabilities must be factored into the appraisal, noting that trust between ADOR and NewJeans had already seriously broken down prior to contract termination and that there were circumstances indicating ADOR failed to provide proper management.

In contrast, the plaintiff side dismissed the defense's arguments with the logic that the core driver of popularity and revenue is not the producer but the artists' inherent capabilities. ADOR countered that, based on past activity trends, all five members of NewJeans possess sufficient capability to continue entertainment activities at the same level indefinitely.

Even if Hee-jin Min's contribution was significant in past performance, that capability has already been internalized within the company system of ADOR and the artists of NewJeans, so it should not be excluded from revenue estimates. Regarding the gap caused by replacing the producer, ADOR drew a line stating that if the company's support systems are in place, internal personnel can be utilized or outsourcing employed to resolve any issues, making the time required for appointing a successor irrelevant as a consideration factor.

Furthermore, regarding the defense's claim that trust had broken down, ADOR countered, "Since the court has already issued a final ruling stating otherwise, this should be excluded from the appraisal." The plaintiff also emphasized that the core of this lawsuit is to estimate the normal profits ADOR would have earned had Hee-jin Min not induced members to engage in illegal activities and halt operations.

Citing Supreme Court precedents, ADOR added that album cancellations or income losses resulting from accidental and abnormal situations arising from disputes should be excluded; instead, past growth trends and maintained revenue flows should be treated as normal conditions to calculate one year's worth of revenue.

The defense side was also criticized for failing to submit even objective data regarding the producer's contribution, making their request for an appraisal based on Hee-jin Min's absence unreasonable. ADOR pointed out that if such a request were necessary, a separate expert examination application should have been filed.

The next argument session is scheduled for 3 p.m. on September 10.

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*This content was translated by AI.