NewJeans’ Exit from ADOR Sparks Urgency for New Company Formation Amid “Visa Extension Crisis”
However, it has been revealed that there is a pressing reason behind the urgency for the group to establish their own company.
On December 19, the YouTube channel “Entertainment President Lee Jin-ho” released a video titled “ADOR? What Can You Even Do… NewJeans is Taking a New Path”.
Lee Jin-ho expressed his concerns “NewJeans is currently treading an unimaginably unprecedented path“, mentioning their unilateral contract termination notice, the omission of the “NewJeans” name in a Vogue photoshoot and their independent advertising deal with a luxury watch brand.
He explained, “This bold move doesn’t seem to consider a Plan B in case they lose in court. Each action causes actual financial damage to ADOR and could lead to significant penalty fees.” However, he added, “What gives NewJeans an advantage is that the legal battle over ADOR’s lawsuit to confirm the validity of the exclusive contract will take at least 1~2 years. If the court eventually rules that ‘NewJeans is under exclusive contract with ADOR’, the group could simply comply by saying, ‘Okay, we’ll return to ADOR.’ At that point, it’s questionable whether ADOR would still demand penalty fees.”
He also highlighted the Vogue photoshoot, where the “NewJeans” name was omitted and only the members’ names were listed, alongside the name of former ADOR CEO Min Hee-jin as the creative director.
He criticized, “While it’s understandable that Min Hee-jin’s name appears in the credits as she was still in office at the time, the photoshoot was organized using ADOR’s resources, staff and funding. Omitting the ‘NewJeans’ name while using ADOR’s assets and efforts doesn’t make sense.”
Lee Jin-ho further claimed that there’s an urgent reason for NewJeans to establish a company.
He explained, “During the November 28 press conference, NewJeans declared, ‘Our relationship with ADOR is over. They cannot interfere with our activities.’ However, foreign members Danielle and Hanni need an agency to engage in economic activities in Korea. Without an agency, they cannot obtain visas, and without visas, they can’t continue their activities. Therefore, to resolve the immediate visa issue, a company is necessary.“
He also mentioned the speculation about forming a “family corporation”. He said, “The members reportedly received 5.2 billion KRW each in settlements from ADOR last year, so they’re not short on funds. Even if each member invests 500 million KRW, they could establish a family company. The problem is that family members would legally count as third parties under the contract. While NewJeans claims ‘We’ve already terminated the contract’, entering into a third-party agreement would constitute a major contract violation.“