According to TenAsia’s investigation on December 18, NewJeans recently communicated its intention to enter into a direct contract with luxury watch brand “O” through ADOR manager “A”. Manager A approached the advertiser directly to discuss the terms of the contract. Additionally, it was revealed that NewJeans had similarly contacted another luxury brand through another former ADOR manager, “B.”
During a press conference announcing the termination of its exclusive contract with ADOR, NewJeans said it will honor existing agreements to minimize losses for advertisers. However, the situation has become more complicated as this marks the first instance of them pursuing contracts through ADOR-affiliated individuals after the contract termination was announced. This approach, while claiming to have severed ties with ADOR, attracted criticism within the industry for its duality, especially as they attempted to broker new deals through ADOR staff who continued to receive compensation from the agency.
As these cases of contract violations continue to emerge, ADOR has responded quickly. The agency suspended Director A and informed both “O” and another luxury brand that contracting directly with artists would violate NewJeans’ exclusive agreement with ADOR.
This created further turmoil in the advertising industry. The brands are reportedly concerned about potential involvement in ongoing legal disputes between NewJeans and ADOR should they accept these direct contracts. Global luxury brands, sensitive to industry trends, are said to be conducting legal reviews into the issue.
According to the current exclusive contractual guidelines of the Ministry of Culture, all artists’ entertainment activities must be conducted through their agency. Artists are prohibited from negotiating appearances or providing services in the cultural and entertainment industry independently or through third parties without prior approval from their agency. Furthermore, any third parties actively involved in facilitating such breaches of contract may also be held liable under civil law.
An industry insider commented: “In a situation where a lawsuit has already been filed, it would have been wiser to wait calmly before taking further action. Rushing to independent SNS accounts or negotiating advertisements seems unwise, especially considering the sensitivity of advertising issues in the industry.
