[All] Controversy over the termination of New Jeans contract: “Disruption of the K-pop market” vs. “The agency is also responsible”

As the dispute over the exclusive contract between girl group New Jeans and their agency Adore escalates into a legal battle, the two sides are continuing their tense tug-of-war . As the music industry worries that “ New Jeans’ unilateral contract termination notice could set a dangerous precedent that threatens the sustainability of K- pop ,” the “ New Jeans situation ” is expected to become a major watershed for the future of the K- pop industry .

On November 28 , 2024, New Jeans announced the termination of the exclusive contract due to Adore's failure to fulfill his obligations.

They came out with the unprecedented ' no-litigation contract termination ' card . Normally, when a singer breaks up with an agency, the singer would first file an application for an injunction to suspend the validity of the exclusive contract and seek a legal judgment . However, this has the disadvantage that activities may become unclear until the court reaches a conclusion .

Attorney Yoo Jin-young of law firm Jeonghyang said, “ If Adore files a lawsuit first, Newjins can continue its activities even if a legal battle is ongoing, ” adding, “ The injunction hearing usually takes two to three months, and if a full-scale lawsuit to terminate the contract begins, it could take at least three years or more . ”

On the 3rd , Adore filed a lawsuit to confirm the validity of its exclusive contract with the Seoul Central District Court, arguing that “ an exclusive contract is not easily terminated based on one party’s claims alone, and if the exclusive contract agreement is not kept, the company’s efforts that it has made while enduring uncertainty will not be compensated anywhere . ” In response, New Jeans stated on the 6th , “ We are no longer affiliated with Adore, and we have already returned the profits exceeding the investment amount to Adore and Hive . ”

The music industry is looking with concern at the New Jeans situation . It takes tens to hundreds of billions of won in initial investment to discover, train, and debut unknown trainees into an idol group, and if contracts are terminated due to one party’s claim, the K- pop market could be thrown into chaos . An executive at a major entertainment agency warned, “ If exclusive contracts that do not last the seven years specified in the standard contract become more frequent, uncertainty will increase and investment will shrink .” He added, “If tampering to lure artists before their contracts expire becomes extreme, it could ultimately throw the K-pop market into chaos . ”

The Korea Entertainment Producers Association also recently released a statement, stating , “ In relation to the New Jeans incident, there are suspicions that internal staff at the agency colluded with a third party to induce the termination of the contract . If true, this could be considered a highly advanced new form of tampering. This is a fatal act that destroys trust in the entertainment industry . ”

In particular, small and medium-sized agencies expressed anxiety about artists using their fandoms as their backs to wage a public opinion war . A representative of a small and medium-sized agency in charge of a new girl group said, “ Singers may have big and small complaints while they are active, but if they make it public that they have been treated unfairly, there is nothing we can do about it, ” and confessed, “ Currently, in cases where a contract is maliciously terminated, the only thing we can do is ultimately claim damages . ”

Some say that since K- pop has a fandom that spans both Korea and overseas, both sides should refrain from a provocative public opinion war that will tire out the public and instead find an amicable agreement as soon as possible . An industry insider said, “ A singer’s unilateral declaration to terminate a contract goes against common sense, but the management company that overlooked the special nature of the entertainment industry and failed to build a relationship of trust with the artist is also partially responsible for letting the problem grow .” He added, “ For the sake of the reputation and public image that K- pop has built up so far, both sides should meet in person and work to bring this situation to a quick end . ”

Conclusion

1. The ' New Jeans Incident ' is an event that will become a watershed in the K- pop industry .

2. Music industry “K- pop market disruption ” vs. artist “ The agency is also responsible for this situation ”

I'm worried that it might be too much of a burden on the shoulders of young friends who only know the stage.

I hope this situation is resolved smoothly.