Legal representatives for nine members have announced that a court has approved their request for an injunction to suspend their exclusive contracts.
Attorney Kim Moon-hee, representing the nine artists, confirmed that the court ruling effectively validates the termination of their agreements with the agency.
“The court’s decision confirms that the artists’ contracts have been lawfully terminated and are no longer in effect,” the legal team stated.
According to the court’s findings, the agency failed to fulfill multiple critical obligations, including:
- Proper payment of settlement funds
- Providing necessary financial documentation for verification
- Adequate management support and artist protection duties
The court determined that these breaches were significant enough to irreparably damage the trust between both parties.
The court explicitly rejected the agency’s argument that contract deposits should be treated as advance payments. The ruling clarified that deposit payments and profit-sharing distributions are separate contractual provisions with no clause allowing deposits to substitute for owed settlement payments.
The boy group, which debuted in late 2017, moved to the current agency in late 2024. Nine out of ten members notified the company of contract termination in early 2025.
The members also filed criminal charges against the agency’s CEO for embezzlement under aggravated economic crime statutes.
The agency had previously stated they made significant financial sacrifices to maintain group activities and could not accept the termination requests.