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NewJeans getting paid just two months after their debut has made ADOR earn much-needed brownie points from K-pop fans.
In their recent appearance on the popular variety show You Quiz on the Block, rookie girl group NewJeans revealed the things they bought themselves with their first salary. They added that they received their salaries two months after their debut, thanks to the explosive success of the group's debut album New Jeans. They debuted in July this year.
This particular instance has earned unparalleled praise from K-pop fans. The K-pop industry is notorious for not paying their idols even five years into their careers, citing trainee debt (the money a company puts into trainees’ daily needs such as food, shelter, and clothing). Idols are expected to pay back the money as soon as they debut, leaving them penniless for years.
However, fandoms applaud HYBE and ADOR for defying expectations and breaking stereotypes.
“Setting a positive industry standard”: ADOR’s reveal of NewJeans getting salaries in two months opens up trainee debt conversation
ADOR’s rookie girl group, NewJeans, is not only creating waves for music and direction, but also for setting a positive standard in the K-pop space. The girl group appeared on You Quiz on the Block along with their CEO, Min Hee-jin.
Among the many glimpses they gave into NewJeans' lives, one was that the members received their first paycheck in just two months after their debut. Min Hee-jin attributed this to the album’s success too.
However, the revelation of NewJeans' salary led K-pop fans to praise the standards of HYBE and ADOR’s artist management, especially regarding no trainee debt.
The conversation around NewJeans’ members’ first paycheck brought up the 2020 Harvard Business School case study by Anita Elberse and Lizzy Woodham. The research revealed that HYBE does not see their trainees as debtors but rather invests in them and writes their expenses under R&D (Research and Development).
In the same case study, HYBE founder Bang Si-hyuk is quoted as saying (via Redditor u/tesselga):
“It takes a long time to train trainees for their eventual debut. And that takes a lot of up-front investment. The trainees aren’t paying that money—it’s an investment by the company. After a debut, it can take several years to break even. And if the act fails, it’s a loss that we as a company will have to take.”
HYBE, and now ADOR, investing in artists by not giving them trainee debt is being seen as a new benchmark for the K-pop industry.
K-pop entertainment agency is notorious for not paying its artists
Trainee debt in the K-pop industry is a serious issue, but one that is often overshadowed by other discussions. An open secret in the industry is that companies create contracts that state that if a trainee debuts, they will only be paid if the group makes a profit.
However, that profit also goes towards repaying their trainee debt—all the money an agency invests in training the idols.
Whether trainee debt or any other reason, the most recent case of the harsh financial conditions of idols was brought to light by LOONA’s Yeojin. The 19-year-old artist revealed that she hadn’t been paid a single cent despite debuting over six years ago, which is one of the many reasons their fans are boycotting the upcoming album.
A few months ago, Golden Child’s Jangjun also revealed that he hadn’t made any income from group promotions. The only money he received was from his solo activities. Golden Child debuted in 2017.
While these cases aren’t few, K-pop fans were naturally happy after knowing HYBE’s treatment of the artists. Small companies trying to walk in the shoes of the behemoth may not reap the same results, but fans were nevertheless glad to see a change in the industry.
