On December 13, rumors that NewJeans would create a family-owned management company began to spread rapidly.
Concerns about heavy legal fines, trademark risks and potential decline in popularity made it seem unlikely that they would find investors easily. Furthermore, as the validity of the exclusive contract with ADOR remains uncertain, no other agencies have shown interest in signing NewJeans.
An industry insider told media outlet TenAsia: “Members of the NewJeans and their families are widely rumored to be planning to establish a management company financed by the family. Given the cancellation of the contract with ADOR, they need the material and human support of a management body to deal with the new hours and a family business is being considered as an immediate solution.
However, the entertainment and legal industries largely believe that this move by NewJeans simply won’t work. In particular, the request for termination of the contract is made only by NewJeans, and their exclusive contract with ADOR is still legally binding today.
Under the terms of their existing exclusive contract, any independent entertainment activity by members or through third parties constitutes a violation. This includes external agencies, as well as family businesses set up by members or their parents.
According to the clauses of the standard exclusivity contract of the Ministry of Culture (articles 2, 6 and 14), all entertainment activities of an artist must be conducted through his agency. Artists may not independently negotiate appearances or provide entertainment services through third parties without prior approval from their agency. Furthermore, it is prohibited to enter into similar or identical contracts with third parties without the consent of the agency, which compromise the effectiveness of the contract or the interests of the agency.
Establishing a personal or family agency, conducting solo entertainment, or working without an agency violates the exclusivity agreement. Exclusive management rights generally cover global assets, unless otherwise indicated. Third parties who knowingly contribute to the violation of an exclusive contract may also be subject to civil and criminal liability.
One legal expert commented: “An exclusive contract requires that artists engage in all activities exclusively with their agency. Without exclusivity, artists could leverage agency investments to gain recognition and then monopolize profits through independent businesses. This is why tampering – artists being chased around by outside forces – is such a serious problem.”
In fact, NewJeans is facing fierce criticism from the Korea Music Content Association, which even threatens to remove NewJeans from Circle Chart updates and refrain from providing data related to Korean music shows and award ceremonies.
NewJeans previously announced on November 28, through an emergency press conference, that it had terminated its contract with ADOR. At the time, the women’s group referenced a breakdown in confidence, including changes in management and direction.
They denied responsibility for the huge sanctions, claiming, “We did not violate the contract, so the responsibility lies with ADOR and HYBE.” They also expressed their desire to continue using the group’s name and said: “If possible, we would like to work with CEO Min Hee-jin.”
Meanwhile, Min Hee-jin faces tampering charges. Reports suggest that he orchestrated NewJeans activities, such as live broadcasts and Hanni’s attendance at a government hearing, to push for his reinstatement as CEO of ADOR. These claims include photos and conversations detailing meetings with another company for investment discussions.
While Min Hee-jin did not address the specific allegations, she confirmed that she has filed legal action. Critics argue that given the central issue of HYBE’s tampering and Min Hee-jin’s conflict since April, a clear explanation and rebuttal are urgently needed.
Source: Daum
