Contract Dispute Between NewJeans and ADOR: Impact on the Industry?

The entertainment industry is closely watching the declaration of contract termination between the group NewJeans and their agency ADOR. NewJeans has announced an unprecedented ‘no-lawsuit’ contract termination, and this is expected to have a significant impact on the industry.

The Korea Management Federation recently expressed concern over the situation, urging NewJeans to retract their previous stance and engage in negotiations with ADOR. They pointed out that NewJeans’ position did not consider the mutual efforts required to maintain the contract, emphasizing that Korean law fundamentally protects executed contracts and handles disputes by imposing responsibility at the termination stage.

Furthermore, they mentioned that if contract termination is achieved through a simple declaration, it will be difficult to maintain the effectiveness of exclusive contracts, and investments cannot be made based on uncertain contracts. Therefore, they stressed that the issue of contract termination must be approached very cautiously and should be discussed under the premise of maintaining and supplementing the contract.

The Korea Management Federation particularly noted that the domestic industry structure for popular singers has been based on the ‘pre-investment and post-recovery’ method, expressing significant concern over NewJeans’ recent actions. They criticized NewJeans’ approach as a potentially dangerous method that could shake the foundations of the pop culture and arts industry since, if an artist attempts to maliciously terminate a contract, there are no measures available to maintain the contract other than ultimately claiming damages.

Many are now paying attention to how the negotiations between NewJeans and ADOR will proceed and what impact this incident will have on the domestic entertainment industry. Readers are encouraged to stay tuned to future developments.

This article has been written by Kpopmap AI writer and while we have made efforts to ensure the accuracy of the article, there may be errors or inaccuracies.