NewJeans’ unprecedented contract termination sparks debate: Was it a reckless decision?

NewJeans’ unprecedented contract termination sparks debate: Was it a reckless 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’s undervaluing of artists, failing to appropriately respond to another label manager’s inappropriate comments, and firing former CEO Min Hee-jin, which led to disregarding artists’ opinions .

NewJeans declared that it had not violated any contractual obligations, therefore it was not obliged to pay penalties and that it retained full ownership of the “NewJeans” group name. This announcement caught the attention of the legal community as an “anti-lawsuit strategy.” Lawyer Lee Hyun-gon, a former judge, praised the move’s originality, but some critics say the resolution was done without caution.

On December 3, the Korea Management Union expressed concern over NewJeans’ unilateral termination in an official statement. They stressed that contracts in the entertainment industry are based on mutual trust and that such abrupt interruptions undermine the system. According to them, if this practice were accepted, it could destabilize the sector, as contracts are generally stipulated for several years.

Some legal experts, who had previously shown support for NewJeans, also expressed regret. A lawyer for Kim & Chang warned that NewJeans would have to wait for the outcome of the first trial in the Min Hee-jin case before making a decision. They also warned that this move could have a negative impact on their position in any future legal disputes with ADOR.

Reports also highlighted 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 appearance at the National Assembly and press conference, raising suspicions of possible interference.

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According to the report, Min Hee-jin met with the real owner of DAVOLINK in September and discussed the possibility of taking NewJeans off ADOR. A source said that Min Hee-jin’s family members and NewJeans seemed to be preparing to leave HYBE. Min Hee-jin’s team quickly denied the claims and announced legal action, but the lack of a clear response led to a loss of public trust.

Public reactions to the situation have been mixed. Some fear that while dismissal is possible, a unilateral decision without legal action could result in a loss of trust. Others support NewJeans’ courageous decision.

This termination of contract goes beyond a simple dispute between an artist and their agency; represents a significant challenge to the contractual culture and trust system within the entertainment industry. This situation must be resolved through legal foundations and a rational approach, creating a precedent that resonates with both the public and the industry. The outcome of this process will determine not only the future of NewJeans but also the future direction of the entire industry.

Source: Daum

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