The fallout from the dispute has entered its fifth day, following NewJeans’ Nov. 29 announcement that it was terminating its exclusive contract with ADOR.
The group said the termination was due to ADOR’s breach of contract and said they are not obligated to engage in legal battles or pay any penalties. While ADOR has repeatedly called for dialogue to resolve the misunderstandings, NewJeans has remained steadfast, saying that continuing their contract with ADOR has caused them “severe mental anguish.”
However, reports have emerged that NewJeans are still carrying out their scheduled activities with the support of ADOR staff. After the press conference, the members reportedly traveled to Japan accompanied by ADOR staff to fulfill commitments such as appearances on music shows.
If the exclusivity contract were indeed terminated, ADOR would apparently have no obligation to provide assistance. Furthermore, since the brand and intellectual property (IP) of NewJeans belong to ADOR, the group cannot use them freely. This paradoxical situation of NewJeans working together with the ADOR staff has raised doubts.
On December 3, the Korea Management Federation (KMF) released a lengthy statement regarding the dispute between NewJeans and ADOR. The KMF criticized the group’s claims, calling them unfounded: “The claim that an exclusive contract can be terminated unilaterally without judicial proceedings is absurd. Such actions could have devastating consequences for the Korean entertainment industry. Companies, having made initial investments, are intrinsically disadvantaged in exclusive contracts. However, current laws do not provide adequate protection for companies. When contracts are intentionally terminated, companies have no choice but to seek compensation for damages, as there are no measures in place to enforce the contract. NewJeans’ approach could seriously undermine the foundations of our cultural and entertainment industries.” The statement urges NewJeans to recant its position and enter into a dialogue with ADOR.
Meanwhile, the controversy surrounding Min Hee-jin, former CEO of ADOR, continues to grow. On December 2, a media outlet reported allegations that Min had advance knowledge of NewJeans’ sudden live broadcast and Hanni’s appearance at a National Assembly audit session. The report also stated that Min had met with the president of an investment firm by introducing the uncle of a NewJeans member, raising suspicions of tampering.
Min Hee-jin filed a lawsuit against two journalists who authored the report, as well as former HYBE CEO Park Ji-won and HYBE CCO Park Tae-hee. However, Min has yet to release a statement addressing the allegations.
Source: Daum
