KMF “NewJeans’ Unilateral Contract Termination and Independent Activities Are Very Risky, Must Be Settled by Law”
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Let’s Keep a Promise: Without Record Producers, There Is No K-pop!
On the morning of February 27, five music industry organizations the Korea Management Federation (KMF), the Korea Entertainment Producer’s Association (KEPA), the Record Label Industry Association Of Korea (LIAK), the Recording Industry Association of Korea (RIAK) and the Korea Music Content Association (KMCA) held a press conference at JW Marriott Hotel Seoul in Seocho-gu under the theme “Let’s Keep a Promise: Without Record Producers, There Is No K-pop!”
During the event, Lee Nam-kyung, director of the Korea Management Federation (KMF), spoke on the ongoing issue of tampering in the entertainment industry. He stated, “The era when agencies could control every move of an artist is over. Celebrities are now individuals who can engage in personal and social interactions.”
He further explained, “The current contract system has too many loopholes that allow artists to evade their exclusive contracts. The responsibility to maintain the contract lies heavily on agencies, which invest significant funds and must sustain the contract until they recover their investments. Meanwhile, artists can easily walk away, leaving companies at a disadvantage in contractual disputes.”
Lee emphasized, “The recent cases where artists unilaterally terminate contracts and walk away pose a significant risk. Such actions undermine the credibility of exclusive contracts. Unilateral declarations and independent activities are highly dangerous, as they suggest that exclusive contracts can be nullified at any time. These issues must be resolved within the framework of the law.”
He concluded by urging lawmakers and the judiciary, stating, “The popular culture and arts industry is not built by one party alone. Instead of creating systems that lead to disputes between agencies and artists, now is the time to establish policies that promote industry growth.”
Industry organizations consecutively expressed strong opposition against NewJeans’ decision
Previously, following NewJeans‘ announcement of their contract termination with ADOR, key industry organizations consecutively expressed strong opposition, with criticism of NewJeans’ actions intensifying.
The Korea Entertainment Producer’s Association (KEPA) issued a statement regarding NewJeans’ exclusive contract termination.
On December 6, 2024, KEPA stated, “The recent controversy over the termination of the exclusive contract between NewJeans and their agency has dealt a significant blow to the entire Korean popular culture and arts industry. K-pop, our pride and a globally recognized cultural asset, is being shaken at its core due to the NewJeans incident. The Korea Entertainment Producer’s Association can no longer overlook this matter and strongly expresses its position.”
KEPA emphasized the importance of exclusive contracts, describing them as “a culmination of mutual trust and commitment“. They added, “NewJeans violated procedural norms by unilaterally holding a press conference to announce the termination of their exclusive contract. This is an extremely irresponsible action as a party to a binding agreement, ignoring both legal standards and industry practices, and it rightly deserves strong criticism.”
KEPA also raised concerns over allegations of “tampering” involving NewJeans. They stated, “Currently, NewJeans is suspected of actively colluding with a third party during the exclusive contract period to induce contract termination. If these allegations prove true, this is not merely a breach of contract but a betrayal of the collaborative relationship built over years between the agency and the artist.”
They further criticized, “The unilateral termination declaration by NewJeans, a group in their third year after achieving rapid success, poses a significant risk of setting a dangerous precedent that could threaten the sustainability of Korea’s popular culture and arts industry.“
KEPA urged NewJeans to “immediately retract their irresponsible claims, return to their original intentions and continue normal activities“. They also stressed the need for “a thorough investigation into illegal activities, such as tampering“.
The Korea Management Federation (KMF) also released a lengthy statement regarding the dispute between NewJeans and ADOR. The KMF criticized the group’s claims, calling them baseless: “The assertion that an exclusive contract can be terminated unilaterally without legal proceedings is preposterous. Such actions could have devastating consequences for the Korean entertainment industry. Companies, having made initial investments, are inherently at a disadvantage in exclusive contracts. However, current laws do not provide adequate protection for companies. When contracts are maliciously terminated, companies are left with no recourse other than seeking compensation for damages, as there are no measures to enforce the contract. NewJeans’ approach could severely undermine the foundations of our cultural and entertainment industries.” The statement urged NewJeans to retract their stance and engage in dialogue with ADOR.
On November 28, 2024, NewJeans held an emergency press conference in Gangnam-gu, Seoul, where they declared the termination of their exclusive contract with ADOR. They claimed that the termination was due to ADOR and HYBE’s faults, asserting that there would be no penalties as a result.
On December 5, 2024, ADOR announced that they had filed a lawsuit on December 3, 2024 with the Seoul Central District Court to confirm the validity of the exclusive contract. The agency stated, “This is an effort to uphold the foundations of the K-pop industry, which has grown based on a healthy trust relationship between artists and companies, and by extension, the Korean popular culture industry. Our stance of wanting to continue with NewJeans remains unchanged. While seeking judicial clarification on the validity of the exclusive contract, we believe that sufficient and sincere discussions with the artists are essential. We will make tireless efforts to resolve any unnecessary misunderstandings between the artists and the company.“
Korean Netizens’ Reactions
On Pann, one of South Korea’s largest online forums, netizens are actively sharing their opinions on this issue, sparking diverse discussions and debates.
Comments are
- Yeah, Hanni was just sharing her own experience~ It’s not like she took any legal action against that manager personally or anything. The real problem is those people who are blindly convinced that Hani must have been lying and the ones manipulating the narrative as if she was harassing the manager ㅋㅋ
- Hanni didn’t reveal any information about the manager at all, but HYBE went ahead and publicly linked it to the ILLIT manager ㅠ
- That specific piece of evidence was deleted by “Bang” Joo-young (Ador CEO) ^^ㅋ..ㅋ Makes you wonder if they had something to hide since they only deleted that partㅋㅋ
- A crazed fandom that hurled vicious insults at an ordinary manager based on a completely one-sided claim with no evidence.
- The issue isn’t just about that one incident, but they keep using it for media play nonstop.
As the debate continues to escalate, netizens remain divided, fueling ongoing discussions about the truth behind the controversy.
