NewJeans’ unprecedented claim of “contract termination” has sent shockwaves through K-pop and the entire entertainment industry
This case is particularly unusual because instead of seeking an injunction to suspend the validity of their exclusive contracts, the group has unilaterally declared the termination of their contracts, placing all responsibility for breach on their agency.
On November 28, NewJeans announced that at the stroke of midnight, a termination notice signed by all five members had been delivered to their agency ADOR. They claimed this marked their freedom to act independently and asserted that the termination arose from ADOR’s breach of obligations, which exempts them from paying any penalty fees.
The entertainment industry has largely reacted negatively to NewJeans’ bold and abrupt move.
According to the “Standard Exclusive Contract for Popular Culture and Arts Artists (Singers)”, recently revised by the Ministry of Culture, Sports and Tourism, if either party violates the contract terms, the other party may demand correction with a grace period of two weeks. If the breach is not remedied or cannot be remedied within this period, the contract may be terminated.
While NewJeans based their termination on this clause, concerns are growing that it could be exploited by others attempting to pursue independent activities.
A music industry insider remarked, “Since the claims from both sides are in direct conflict, this needs to be resolved legally. Depending on the outcome, unilateral termination without legal proceedings could become a significant issue that shakes the foundation of the entertainment industry.”
Another industry expert added, “If NewJeans achieves a favorable outcome, it could lead to significant changes in contracts between agencies and artists. From an agency’s perspective, who would invest heavily in fostering an artist under such uncertain circumstances?”
This precedent could potentially lead to situations where exclusive contracts are nullified at will, and even the issue of tampering (contacting artists under contract with another agency) may become more contentious.
An official from a talent agency representing actors shared similar concerns, stating, “Unilateral contract termination without going through proper legal channels is not a desirable practice. If this method becomes effective, any dispute could lead to immediate termination attempts.”
Source: Naver
