However, it was revealed that there is an urgent reason behind the urge for the group to establish their own company.
On December 19, the YouTube channel “Entertainment President Lee Jin-ho” released a video titled “ADOR? What can you do… NewJeans is taking a new path.”
Lee Jin-ho expressed his concerns”NewJeans is currently on an unimaginably unprecedented path“, mentioning the unilateral termination of the contract, the omission of the name “NewJeans” in a Vogue photo shoot and their independent advertising agreement with a luxury watch brand.
He explained: “This bold move doesn’t seem to take into consideration a plan B in case they lose in court. Each action causes actual financial harm to ADOR and could result in significant penalties.” However – he added – “What gives NewJeans an advantage is that the legal battle over ADOR’s lawsuit to confirm the validity of the exclusive contract will take at least 1-2 years. If the court ultimately decides that “NewJeans has an exclusive contract with ADOR,” the group could simply comply by saying, “Okay, we’ll go back to ADOR.” At that point, it is questionable whether ADOR would still require penalties.”
He also highlighted the Vogue photo shoot, in which the name “NewJeans” was omitted and only the members’ names were listed, along with former ADOR CEO Min Hee-jin’s name as creative director.
He criticized: “While it is understandable that Min Hee-jin’s name appears in the credits since she was still in office at the time, the photo shoot was organized using ADOR’s resources, staff and funding. Omitting the name “NewJeans” while using ADOR’s resources and efforts makes no sense.”
Lee Jin-ho also said that there is an urgent reason for NewJeans to form a company.
He explained: “During the November 28 press conference, NewJeans stated: ‘Our relationship with ADOR is over. They cannot interfere with our activities.’ However, foreign members Danielle and Hanni need agency to engage in economic activities in Korea. Without an agency they cannot obtain visas and without visas they cannot continue their activities. Therefore, to resolve the visa issue immediately, a company is needed.“
He also mentioned the possibility of forming a “family company”. He said: “Members reportedly received KRW 5.2 billion each in compensation from ADOR last year, so they are not short of funds. Even if each member invested 500 million KRW, they could create a family business. The problem is that family members would legally be considered third parties under the contract. While NewJeans states “We have already terminated the contract,” entering into an agreement with a third party would constitute a serious breach of contract.“
