NewJeans Contract Dispute Sparks Debate Over Industry Ethics
Sharon Jung / Published December 2, 2024 08:26 PM
Sharon Jung
Courtesy of Ador
The controversy surrounding the contract dispute between K-pop group NewJeans and their agency, ADOR, has drawn significant attention, prompting the Korea Management Federation (KMF) to issue a formal statement on December 3. The KMF expressed deep concern about the potential impact of this dispute on the trust and stability of the Korean entertainment industry, urging NewJeans to reconsider their position and return to discussions with their original agency.
The federation emphasized that the entertainment industry is built on mutual trust and respect between artists and their management. "Exclusive contracts are not merely legal agreements but a cornerstone of the collaborative efforts that fuel the industry’s growth," the statement read. It stressed that any issues arising during the contract term should be resolved through mutual understanding rather than unilateral termination.
The dispute began on November 29, when NewJeans held an urgent press conference to announce their intent to terminate their exclusive contract with ADOR, alleging breaches of obligations by the agency. ADOR refuted the claims, stating that the contract, signed in April 2022 and set to expire in July 2029, remains valid.
KMF criticized NewJeans' stance, arguing that such unilateral declarations undermine the legal framework protecting contracts. “Our laws are designed to safeguard the sanctity of agreements, ensuring they are not dissolved lightly. NewJeans' actions risk eroding the foundational trust necessary for our industry to thrive,” the federation stated.
The KMF also highlighted the broader implications of this dispute, warning that it could destabilize the investment model underpinning the industry. The statement pointed out that the entertainment sector operates on a “pre-investment, post-recovery” principle, with agencies assuming substantial financial risks to develop and promote new talent. "If contracts can be unilaterally nullified, it jeopardizes the entire ecosystem, deterring future investments," the KMF explained.
Furthermore, the federation addressed the legal vulnerabilities faced by management companies. They noted that while agencies are often perceived as the dominant party, they lack sufficient legal recourse to enforce contract compliance beyond seeking damages. "This imbalance leaves companies in a precarious position, especially when faced with disputes involving bad faith actions from artists," the statement elaborated.
Calling NewJeans’ approach “highly detrimental,” the KMF urged the group to retract their claims and engage in constructive dialogue with ADOR. The federation also appealed to government authorities to initiate discussions aimed at reforming regulations to better support fair contract practices and ensure the sustainability of the entertainment industry.
The statement concluded with a commitment to closely monitor the situation and advocate for measures to prevent similar disputes in the future. "Our industry’s continued growth depends on maintaining trust and balance. We will not stand by and allow its foundations to be compromised," the KMF affirmed.
Sayart / Sharon Jung, guhuijeong784@gmail.com
Courtesy of Ador
The controversy surrounding the contract dispute between K-pop group NewJeans and their agency, ADOR, has drawn significant attention, prompting the Korea Management Federation (KMF) to issue a formal statement on December 3. The KMF expressed deep concern about the potential impact of this dispute on the trust and stability of the Korean entertainment industry, urging NewJeans to reconsider their position and return to discussions with their original agency.
The federation emphasized that the entertainment industry is built on mutual trust and respect between artists and their management. "Exclusive contracts are not merely legal agreements but a cornerstone of the collaborative efforts that fuel the industry’s growth," the statement read. It stressed that any issues arising during the contract term should be resolved through mutual understanding rather than unilateral termination.
The dispute began on November 29, when NewJeans held an urgent press conference to announce their intent to terminate their exclusive contract with ADOR, alleging breaches of obligations by the agency. ADOR refuted the claims, stating that the contract, signed in April 2022 and set to expire in July 2029, remains valid.
KMF criticized NewJeans' stance, arguing that such unilateral declarations undermine the legal framework protecting contracts. “Our laws are designed to safeguard the sanctity of agreements, ensuring they are not dissolved lightly. NewJeans' actions risk eroding the foundational trust necessary for our industry to thrive,” the federation stated.
The KMF also highlighted the broader implications of this dispute, warning that it could destabilize the investment model underpinning the industry. The statement pointed out that the entertainment sector operates on a “pre-investment, post-recovery” principle, with agencies assuming substantial financial risks to develop and promote new talent. "If contracts can be unilaterally nullified, it jeopardizes the entire ecosystem, deterring future investments," the KMF explained.
Furthermore, the federation addressed the legal vulnerabilities faced by management companies. They noted that while agencies are often perceived as the dominant party, they lack sufficient legal recourse to enforce contract compliance beyond seeking damages. "This imbalance leaves companies in a precarious position, especially when faced with disputes involving bad faith actions from artists," the statement elaborated.
Calling NewJeans’ approach “highly detrimental,” the KMF urged the group to retract their claims and engage in constructive dialogue with ADOR. The federation also appealed to government authorities to initiate discussions aimed at reforming regulations to better support fair contract practices and ensure the sustainability of the entertainment industry.
The statement concluded with a commitment to closely monitor the situation and advocate for measures to prevent similar disputes in the future. "Our industry’s continued growth depends on maintaining trust and balance. We will not stand by and allow its foundations to be compromised," the KMF affirmed.
