NEW JEANS Cookie Court Would Be Perfect for JUDGE JUDY
The scales of justice are tilting towards HYBE in the latest legal developments involving K-pop girl group NEW JEANS and its parent label ADOR. In response to New Jeans unilaterally declaring the termination of the remaining five years left on their exclusive contract, ADOR filed a lawsuit to confirm the validity of their agreement. How did ADOR cleverly throw down this reverse UNO card and how did the NEW JEANS members respond?
In addition, the Korea Entertainment Producers Association issued a scathing statement against New Jeans. Calling their actions a dangerous threat shaking the core of the K-pop industry, the KEPA wants New Jeans to stop manipulating their contract and enlisting the support of bunny uncles who would help destroy the artist-agency contract. Should New Jeans succeed, would it lead to fewer K-pop groups debuting and the end of the trainee system itself? And how did New Jeans Mama accidentally reveal herself yet again as the not so silent hand behind this cookie drama?
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ADOR’s Statement on December 5, 2024
Hello, this is ADOR.
On December 3, we filed a lawsuit with the Seoul Central District Court to legally confirm the validity of our exclusive contracts with our artist NewJeans.
We did not wish for the issue with our artist to be resolved through legal judgment, but this inevitable decision was made to clarify to the artist and various stakeholders that the exclusive contracts between the agency and the artist cannot be lightly terminated based on one-sided claims. Above all, we seek clear judgment from the court to uphold the foundation of the K-pop industry, which has grown based on a healthy trust relationship between artists and agencies, and further, the foundation of the Korean popular culture industry.
It is with heavy hearts that we share this news, but it is to prevent any misunderstandings that the artists might have about the legality of the contract termination, which could lead to violations of the current exclusive contract in their entertainment activities, causing unexpected damage and confusion among domestic and international industry stakeholders.
Today’s K-pop has developed through the synergy of the artists’ talents and relentless efforts and the companies’ full investment and trust. In an uncertain environment where it is difficult to predict success or failure, the agencies’ proactive support over a long period of time is essential for popular culture and especially the K-pop industry. An agency’s proactive support is based on the expectation and belief that the agency and the artist can grow together over a certain period of time, and this mutual agreement is the foundation of the exclusive contract.
If this fundamental agreement is not upheld, the agency’s efforts, which have endured long periods of uncertainty and provided total trust in the form of investment, will be rendered powerless and irrecoverable. This means that systematic support, investment, and system enhancement in this industry can no longer be expected, and we are most concerned that the virtuous cycle of growth in the K-pop industry, which has rapidly developed through the sweat and dreams of many, will be disrupted.
ADOR’s stance on continuing with NewJeans remains unchanged. Separate from seeking judicial judgment on the validity of the exclusive contract, we believe that sufficient and sincere discussions with the artists are absolutely necessary. Despite numerous earnest requests from ADOR’s employees, we have not yet had the opportunity to communicate with the artists, but we will make continuous efforts to resolve any unnecessary misunderstandings between the artists and the agency. We will do our best to repay the love for NewJeans’ music with better activities. We ask for your support and encouragement so that ADOR and the members of NewJeans can all wisely overcome the current situation.
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KOREA ENTERTAINMENT PRODUCERS ASSOCIATION Statement on December 6, 2024
The recent controversy over the termination of the exclusive contract between NewJeans and their agency has delivered a deep shock to the entire Korean pop culture and entertainment industry. K-pop, our national pride and a cultural asset garnering global attention, is now shaken at its very roots due to the NewJeans incident. The Korea Entertainment Producers Association cannot overlook this situation any longer and hereby expresses its firm stance.
First, an exclusive contract is not merely a piece of paper but the culmination of mutual trust and promises. We express great concern over the notion that an exclusive contract could be terminated based solely on one-sided claims. Contract termination can only occur when the party seeking termination provides justifiable grounds. However, NewJeans has failed to present concrete evidence to support their reasons. In fact, they have not only demanded certain corrections that extend beyond the terms agreed upon between the agency and artist, but also unilaterally announced the termination of the contract through a press conference without following proper termination procedures. Such behavior, from a party to a contract who should act responsibly, is extremely irresponsible. It disregards both legal standards and established industry practices, and thus deserves to be strongly criticized.
Second, there are further concerns that NewJeans may be implicated in "tampering"—the illegal act of enticing an artist away before their exclusive contract ends. Currently, it is suspected that internal personnel of the agency actively conspired with a third party during the contract period to induce contract termination. If these allegations are proven true, it would constitute a new and highly developed form of tampering. Tampering is a fatal act that destroys trust in the entertainment industry at its core. This is not merely a case of breaching a contract; it is an act of betrayal against the long-standing cooperative relationship that the agency and the artist have built together. If a globally renowned K-pop artist like NewJeans is involved in tampering, it would leave an indelible scar on our entire pop culture industry.
Third, the unilateral termination declaration by NewJeans—an up-and-coming group who achieved rapid success in their third year—could set a perilously dangerous precedent that threatens the sustainability of Korea’s pop culture and entertainment industry. Agencies bear the risk of discovering and nurturing artists, investing immense time and capital. The fostering of an artist is more than a mere business relationship; it is a product of mutual trust and dedication. Yet the fact that NewJeans, who skyrocketed to global fame right from their debut, announced termination before even half of their contract period had elapsed—along with the associated tampering allegations—undermines the relationship between agencies and artists, severely diminishes trust across the industry, and significantly deters investment. If such arbitrary contract terminations were tolerated, who would dare invest in the Korean K-pop market in the future?
The Korea Entertainment Producers Association urgently requests that NewJeans immediately withdraw this unfounded and irresponsible claim, return to their original intentions, and continue their activities in a normal manner. Furthermore, if they have been attempting independent entertainment activities domestically or abroad, we strongly urge them to cease such attempts immediately and adopt a forward-looking attitude, including open dialogue with their agency. We also call for a thorough investigation into any illegal acts such as tampering.
Finally, we earnestly appeal to the National Assembly and government officials:
While the pop culture and entertainment industry may begin with corporate capital, the creation and ongoing activities of a star are supported by the hard work and sacrifices of countless workers within that enterprise. Therefore, disputes over exclusive contracts and issues of tampering are not only matters of corporate survival, but are also intimately tied to the livelihoods of numerous industry workers. We implore you once again to establish robust supplementary measures to prevent further occurrences of unilateral contract terminations by artists.
Thank you.
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NEW JEANS Statement on December 6, 2024
“Hello, this is Minji, Hanni, Danielle, Haerin, and Hyein.
We feel regretful having to release such a statement amid this unsettling situation.
Recently, through the media, we learned that ADOR filed a lawsuit seeking confirmation that our exclusive contracts with them remain valid. In its official statement, ADOR failed to properly assert that there were no breaches of the exclusive contract. Instead, it merely repeated the claim that, since the company provided support and investment, contract termination is impossible until those costs are recovered.
However, we have already returned profits in excess of our investment to both ADOR and HYBE, and HYBE has attempted to sabotage us by maligning and reverse virally devaluing us, and ADOR has aided and abetted this after a change in management. It's almost as if the company that is supposed to protect us has created our own bad publicity, and we believe we are likely to suffer more harm in the future, especially given this breakdown in trust.
Our trust in ADOR and HYBE has been shattered by their inability to fulfill their obligations to protect their artists and their repeated breaches of contract. As stated in our exclusive agreement, there is no longer any reason to work with ADOR and HYBE.
The exclusivity agreement clearly states that we can terminate the agreement if ADOR fails to fulfill its contractual obligations.
Forcing us to work for another five years despite this breakdown of trust and breach of contract is not only unreasonable, but inhumane.
We gave them a 14-day grace period to cure the breach, but they failed to do so at all, so we gave them notice of termination, which was effective immediately, in accordance with the Exclusive Agreement.
ADOR has now filed a lawsuit seeking a court’s judgment on the legality of this termination. However, this is merely a post facto procedure to obtain judicial confirmation. We express our deep regret that, despite this, ADOR issued a statement misleading the public into believing that the contract still remains in force.
To be clear, as of November 29, 2024, we are no longer part of ADOR, and ADOR has no right to interfere or intervene in our activities.
We were horrified and disgusted to read the media reports that announced dialogue and reconciliation on the surface, while behind the scenes, they followed us, slandered us, and spread falsehoods. However, no matter how much they try to divide us, the five of us are united and nothing can separate us.
We are diligently working on the remaining scheduled shows with ADOR as promised shortly after the announcement of our termination, but we have also witnessed managers and staff who are helping us with those shows crying because they have been severely harassed by ADOR and HYBE, including having their laptops taken away from them and being subjected to interrogations. We find this behavior towards the staff working on the remaining shows to be completely unacceptable, and we are distressed that we are not the only ones being harmed by this unconscionable and inhumane company.
We know we have a long road ahead of us, but we have a dream of a life with our fans who love us through healthy music and we want to make sure we fulfill that dream.
Even after the change of CEO, and despite multiple revelations of HYBE’s problems, ADOR has not corrected them, nor has it demanded improvements from other labels that have defamed and misrepresented us. We are deeply disappointed that ADOR has chosen to sue us again, and we look forward to the trial process, which will shed light on the circumstances that led us to choose to terminate our exclusive contract and the reasons for ADOR breach of contract.
We would like to express our sincere gratitude to the many people who have supported us, and we ask for your continued support and love for the five of us.”