On December 13, rumors of NewJeans creating a family-owned management company started to spread rapidly.
Concerns about hefty penalty lawsuits, trademark risks, and potential popularity decline made it seem unlikely they would easily find investors. Moreover, as the validity of their exclusive contract with ADOR remains uncertain, no other agency has shown interest in signing NewJeans.
An industry insider told media outlet TenAsia, “There is widespread talk that NewJeans members and their families are planning to set up a family-funded management company. Given their contract termination notice to ADOR, they need the material and human support of a management entity to take on new schedules, and a family-owned company is being considered as an immediate solution.”
However, the entertainment and legal sectors largely feel that this move of NewJeans simply won’t work. In particular, the claim of contract termination is insisted by NewJeans alone, and their exclusive contract with ADOR is as of date, still legally binding.
Under the terms of their existing exclusive contract, any independent entertainment activities by members or through third parties constitute a breach. This includes external agencies, as well as family-owned companies established by the members or their parents.
According to clauses in the Ministry of Culture’s standard exclusive contract (Articles 2, 6, and 14), all entertainment activities by an artist must be conducted through their agency. Artists cannot independently negotiate appearances or provide entertainment services via third parties without prior approval from their agency. Additionally, engaging in similar or identical contracts with third parties, without the agency’s consent, which undermines the contract’s effectiveness or the agency’s interests, is prohibited.
Establishing a personal or family agency, conducting solo entertainment activities, or working without an agency all violate the exclusive contract. Exclusive management rights typically cover global activities unless otherwise stipulated. Third parties that knowingly assist in breaching an exclusive contract may also face civil and criminal liability.
A legal expert commented, “An exclusive contract requires artists to engage in all activities solely with their agency. Without exclusivity, artists could leverage the agency’s investments to gain recognition and then monopolize the profits through independent activities. This is why tampering—where artists are poached for external forces—is such a serious issue.”
In fact, NewJeans is facing fierce criticism from the Korea Music Content Association, which even threatens to remove NewJeans from Circle Chart updates and refrain from providing related data to Korean music shows and award ceremonies.
NewJeans previously announced on November 28 through an emergency press conference that they terminated their contract with ADOR. At the time, the girl group cited a breakdown in trust, including changes in management and direction.
They denied responsibility for the enormous penalties, claiming, “We have not breached the contract, so the responsibility lies with ADOR and HYBE.” They also expressed a desire to continue using the group name and said, “If possible, we would like to work with CEO Min Hee-jin.”
Meanwhile, Min Hee-jin is facing allegations of tampering. Reports suggest she orchestrated NewJeans’ activities, such as live broadcasts and Hanni’s participation in a government hearing, to push for her reinstatement as ADOR’s CEO. These claims include photos and conversations detailing meetings with another company for investment discussions.
While Min Hee-jin has not addressed the specific allegations, she has confirmed filing lawsuits. Critics argue that, given the core issue of tampering in HYBE and Min Hee-jin’s conflict since April, a clear explanation and rebuttal are urgently needed.
Source: Daum
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