According to TenAsia’s investigation on December 18, NewJeans recently conveyed their intention to enter into a direct contract with luxury watch brand “O” via ADOR manager “A.” Manager A directly approached the advertiser to discuss contract terms. Additionally, it was revealed that NewJeans had similarly reached out to another luxury brand through a different former ADOR manager, “B.”
During a press conference announcing their termination of the exclusive contract with ADOR, NewJeans stated they would honor existing agreements to minimize losses for advertisers. However, the situation has become more complicated as this marks the first instance of them pursuing contracts through ADOR-affiliated individuals after their contract termination announcement. This approach, while claiming to have severed ties with ADOR, has drawn criticism within the industry for its duality, especially as they attempted to broker new deals through ADOR personnel still receiving compensation from the agency.
As these instances of contract violations continue to surface, ADOR has responded swiftly. The agency placed Manager A on suspension and informed both “O” and another luxury brand that entering into direct contracts with the artists would violate NewJeans’ exclusive agreement with ADOR.
This has created further unrest in the advertising sector. Brands are reportedly concerned about potential involvement in the ongoing legal disputes between NewJeans and ADOR should they agree to these direct contracts. Global luxury brands, sensitive to industry trends, are said to be conducting legal reviews regarding the matter.
Under the current Ministry of Culture’s standard exclusive contract guidelines, all entertainment activities by artists must be conducted through their agency. Artists are prohibited from negotiating appearances or providing services in the cultural and entertainment industries independently or through third parties without prior approval from their agency. Additionally, any third party actively involved in facilitating such contract violations may also be held liable under civil law.
An industry insider commented, “In a situation where a lawsuit has already been filed, it would have been wiser to wait calmly before engaging in further activities. Rushing into independent SNS accounts or advertisement negotiations seems imprudent, especially given the sensitivity of advertisement issues in the industry.”
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