NewJeans firm on severing ties with agency, but industry opinions differ
K-pop girl group NewJeans reaffirmed its stance, Friday, through an official statement that the group is no longer affiliated with its agency, Ador, or its parent company, HYBE Labels, reiterating its claim to have terminated its members' exclusive contracts.
The announcement, following the group's surprise press conference on Nov. 28, has sparked controversy in the entertainment industry, with many insiders calling it an "irresponsible" and "dangerous" move that could destabilize the foundations of the longstanding industry.
In a statement released Friday, the five NewJeans members - Minji, Hanni, Danielle, Haerin and Hyein - reiterated their criticism of Ador and HYBE, blaming the companies for the situation.
"We have already returned profits exceeding the investment to Ador and HYBE," the statement read. "Despite this, HYBE has repeatedly tried to tarnish our reputation by spreading rumors, while Ador, following a management change, failed to intervene."
The group emphasized that the failure of Ador and HYBE to uphold their contractual obligations had led to a breakdown in trust.
"There is no reason to continue working with Ador and HYBE, as clearly stated in our exclusive contract," the statement continued. "The contract allows us to terminate the agreement if Ador fails to meet its obligations."
During the Nov. 28 press conference, the five members declared that the termination of the contract would take effect the following day, claiming that the agency's actions, including its failure to protect the group, left them no choice but to end the relationship.
In response, Ador was quick to file a lawsuit in the Seoul Central District Court to confirm the ongoing validity of the exclusive contract, in spite of the members' claims. NewJeans’ Friday statement served as a direct response to this lawsuit.
In addressing Ador’s claims, NewJeans expressed regret over the agency’s attempt to mislead the public into believing the contract was still in force.
"Although we expect a rocky road ahead, we dream of living a life where we can engage in healthy musical activities with our fans who love and support us. We are determined to make that dream a reality," the statement concluded.
Industry insiders remain skeptical
Despite its members' determination, NewJeans' move has not been well received by the wider entertainment industry.
The Korea Entertainment Producer's Association (KEPA), a group representing the domestic entertainment, music and performance industries, expressed concern that NewJeans' actions could pose a threat to the K-pop industry.
"K-pop, a global cultural asset and source of our national pride, is being shaken to its core by the NewJeans situation," KEPA said in a statement issued Friday. "An exclusive contract is not just a document, but the result of shared trust and promises. The notion that such contracts can be terminated unilaterally without concrete justification is deeply concerning."
The association criticized NewJeans for failing to provide concrete evidence to support their claims of contract termination. It also condemned the group's decision to hold a press conference announcing the termination unilaterally, calling it an "irresponsible move" that disregards legal standards and industry norms.
KEPA further warned that NewJeans' actions could set a "dangerous precedent" for the sustainability of Korea’s entertainment industry.
"The unilateral declaration of contract termination, from a group that achieved such huge success in just three years, could pose a great threat to the industry's future," the association said.
Another organization, the Korea Management Federation (KMF), also criticized NewJeans' decision. In a statement issued Tuesday, KMF questioned, "If a contract can be terminated just by declaration, how can the validity of an exclusive contract be guaranteed? Who would invest in such uncertain contracts?"
KMF further argued, "If an artist maliciously seeks to terminate a contract, the agency has no choice but to claim damages. This approach, as seen with NewJeans, could undermine the very foundation of the culture and entertainment industry."
Legal experts have also weighed in on the dispute, with differing opinions on whether NewJeans’ contract termination is legally justifiable.
Kim Kyoung-nam, an attorney at For You Law Office, argued through his YouTube channel that the court would be unlikely to support NewJeans' contract termination claim.
"Contract termination is allowed only in cases of significant breach, such as when an agency is financially unable to support its artists," Kim said. "But no such circumstances have been cited by NewJeans."
On the other hand, Lee Hyun-gon, an attorney with Saeol Law Office, expressed support for NewJeans’ decision to declare their independence without filing a provisional injunction.
"NewJeans’ decision to act without a lawsuit is unprecedented," Lee said in a social media post on Nov. 28, following the group's press conference. "It is a method that allows them to pursue independence while waiting for Ador to file a lawsuit."
Lee also criticized Ador’s response, pointing out that the company had also previously chosen to unilaterally terminate a shareholder agreement with former Ador CEO Min Hee-jin.
"It doesn't make sense to take such actions and then prevent others from doing the same," Lee noted.
source: The Korea Times
The announcement, following the group's surprise press conference on Nov. 28, has sparked controversy in the entertainment industry, with many insiders calling it an "irresponsible" and "dangerous" move that could destabilize the foundations of the longstanding industry.
In a statement released Friday, the five NewJeans members - Minji, Hanni, Danielle, Haerin and Hyein - reiterated their criticism of Ador and HYBE, blaming the companies for the situation.
"We have already returned profits exceeding the investment to Ador and HYBE," the statement read. "Despite this, HYBE has repeatedly tried to tarnish our reputation by spreading rumors, while Ador, following a management change, failed to intervene."
The group emphasized that the failure of Ador and HYBE to uphold their contractual obligations had led to a breakdown in trust.
"There is no reason to continue working with Ador and HYBE, as clearly stated in our exclusive contract," the statement continued. "The contract allows us to terminate the agreement if Ador fails to meet its obligations."
During the Nov. 28 press conference, the five members declared that the termination of the contract would take effect the following day, claiming that the agency's actions, including its failure to protect the group, left them no choice but to end the relationship.
In response, Ador was quick to file a lawsuit in the Seoul Central District Court to confirm the ongoing validity of the exclusive contract, in spite of the members' claims. NewJeans’ Friday statement served as a direct response to this lawsuit.
In addressing Ador’s claims, NewJeans expressed regret over the agency’s attempt to mislead the public into believing the contract was still in force.
"Although we expect a rocky road ahead, we dream of living a life where we can engage in healthy musical activities with our fans who love and support us. We are determined to make that dream a reality," the statement concluded.
Industry insiders remain skeptical
Despite its members' determination, NewJeans' move has not been well received by the wider entertainment industry.
The Korea Entertainment Producer's Association (KEPA), a group representing the domestic entertainment, music and performance industries, expressed concern that NewJeans' actions could pose a threat to the K-pop industry.
"K-pop, a global cultural asset and source of our national pride, is being shaken to its core by the NewJeans situation," KEPA said in a statement issued Friday. "An exclusive contract is not just a document, but the result of shared trust and promises. The notion that such contracts can be terminated unilaterally without concrete justification is deeply concerning."
The association criticized NewJeans for failing to provide concrete evidence to support their claims of contract termination. It also condemned the group's decision to hold a press conference announcing the termination unilaterally, calling it an "irresponsible move" that disregards legal standards and industry norms.
KEPA further warned that NewJeans' actions could set a "dangerous precedent" for the sustainability of Korea’s entertainment industry.
"The unilateral declaration of contract termination, from a group that achieved such huge success in just three years, could pose a great threat to the industry's future," the association said.
Another organization, the Korea Management Federation (KMF), also criticized NewJeans' decision. In a statement issued Tuesday, KMF questioned, "If a contract can be terminated just by declaration, how can the validity of an exclusive contract be guaranteed? Who would invest in such uncertain contracts?"
KMF further argued, "If an artist maliciously seeks to terminate a contract, the agency has no choice but to claim damages. This approach, as seen with NewJeans, could undermine the very foundation of the culture and entertainment industry."
Legal experts have also weighed in on the dispute, with differing opinions on whether NewJeans’ contract termination is legally justifiable.
Kim Kyoung-nam, an attorney at For You Law Office, argued through his YouTube channel that the court would be unlikely to support NewJeans' contract termination claim.
"Contract termination is allowed only in cases of significant breach, such as when an agency is financially unable to support its artists," Kim said. "But no such circumstances have been cited by NewJeans."
On the other hand, Lee Hyun-gon, an attorney with Saeol Law Office, expressed support for NewJeans’ decision to declare their independence without filing a provisional injunction.
"NewJeans’ decision to act without a lawsuit is unprecedented," Lee said in a social media post on Nov. 28, following the group's press conference. "It is a method that allows them to pursue independence while waiting for Ador to file a lawsuit."
Lee also criticized Ador’s response, pointing out that the company had also previously chosen to unilaterally terminate a shareholder agreement with former Ador CEO Min Hee-jin.
"It doesn't make sense to take such actions and then prevent others from doing the same," Lee noted.
source: The Korea Times