NewJeans’ Unprecedented Contract Termination Sparks Debate: Was It a Rash Decision?
On November 28, NewJeans held an emergency press conference, announcing that their exclusive contract with ADOR would be terminated at midnight on November 29. They cited reasons such as ADOR undervaluing the artists, failing to respond appropriately to inappropriate comments from another label manager, and dismissing former CEO Min Hee-jin, which led to the disregard of the artists’ opinions.
NewJeans stated that they did not violate any contract obligations, so they are not obligated to pay penalties, and they will retain full ownership of the group name “NewJeans.” This announcement has drawn attention in the legal community as a “no-lawsuit strategy.” Lawyer Lee Hyun-gon, a former judge, praised the originality of the move, but some critics argue that the termination lacked caution.
On December 3, the Korea Management Union expressed concern over NewJeans’ unilateral termination in an official statement. They emphasized that contracts in the entertainment industry are built on mutual trust, and such abrupt terminations undermine the system. They argued that if this practice becomes accepted, it could destabilize the industry, as contracts are generally made for several years.
Some legal experts, who had previously shown support for NewJeans, also expressed regret. A lawyer from Kim & Chang warned that NewJeans should have waited for the outcome of the first trial in the Min Hee-jin lawsuit before making their decision. They also cautioned that this move could negatively impact their position in any future legal disputes with ADOR.
Reports have also pointed out a close connection between NewJeans and Min Hee-jin. On December 2, Dispatch reported that Min Hee-jin was involved in NewJeans’ surprise YouTube live broadcast, Hanni’s National Assembly appearance, and the press conference, raising suspicions of possible interference.
According to the report, Min Hee-jin met with the real owner of DAVOLINK in September and discussed the possibility of taking NewJeans out of ADOR. A source claimed that Min Hee-jin and NewJeans’ family members seemed to be preparing to leave HYBE. Min Hee-jin’s team quickly denied the claims and announced legal action, but their lack of a clear response has led to a loss of public trust.
Public reactions to the situation have been mixed. Some worry that while termination is possible, a unilateral decision without legal action could result in a loss of trust. Others support NewJeans’ bold decision.
This contract termination goes beyond a simple dispute between an artist and their agency; it poses a significant challenge to the contract culture and trust system within the entertainment industry. This situation needs to be resolved through legal grounds and a rational approach, setting a precedent that resonates with both the public and the industry. The outcome of this process will determine not only NewJeans’ future but the future direction of the entire industry.
Source: Daum
