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On December 13, 2024, SPOTV News reported that the Korea Music Content Association (KMCA) recently issued a formal warning to K-pop sensation NewJeans and their former creative director, Min Hee-jin, amid rising allegations of industry manipulation and contract disputes.
This controversy threw light on significant tensions in the K-pop industry, with allegations of tampering and corporate conflicts now making headlines.
"We have already witnessed the so-called 'tampering' attempts by external producers hired by entertainment agencies (hereinafter referred to as agencies) to persuade young, promising artists and their parents to break their exclusive contracts with the agencies with the 'Fifty Fifty' incident."
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KMCA continued that the latest media revelations on the tampering charges against former ADOR CEO Min Hee-jin were allegedly similar to the Fifty Fifty incident. Stating that the association could no longer ignore this as the ongoing Min Hee-jin, NewJeans, and ADOR feud showed that such manipulation efforts may easily happen at major organizations.
"Not long after the Fifty Fifty incident, the recent media reports on the tampering allegations against former ADOR CEO Min Hee-jin, which are very concerning in that they clearly reveal just how rampant tampering is in the popular music industry, regardless of whether they are true or not."
Tampering allegations: Why KMCA is investigating NewJeans and Min Hee-jin's recent actions
On November 28, 2024, NewJeans held a surprise press conference announcing the termination of their exclusive contracts with ADOR, their managing agency under HYBE. The members cited breaches of contract and disagreements over the management structure as their reasons for leaving. However, one specific demand stood out: the reinstatement of Min Hee-jin as ADOR’s CEO.
Despite the public announcement, ADOR denied the validity of the claims, emphasizing that they had not violated the terms of the contracts. The agency subsequently filed a lawsuit on December 5, to dispute the contract terminations, asserting that NewJeans is still under binding contract with the label.
The Korea Herald reported that NewJeans would be subjected to a financial penalty under the Fair Trade Commission’s standard contract guidelines if the court sided with ADOR after verifying the contract. The penalties were estimated to be between 450 billion won ($313 million) and 620 billion won ($418 million).
The KMCA expressed concerns about these developments, warning all parties involved about maintaining professional standards and adhering to ethical practices.
"We ask former representative Min to clarify his position and reveal the facts regarding the recent media reports on the tampering allegations. Through past press releases, numerous suspicions were raised regarding former representative Min's attempted tampering and breach of trust regarding his former agency."
Additionally, KMCA added that they would "remove" album and music source sales of agencies and associated artists suspected of tampering from its statistics. KMCA also stated that excluding and supplying data of the concerned artists to major domestic music award ceremonies (Circle Chart Music Awards, MAMA, Golden Disc) and more.
The controversy escalated further due to Min Hee-jin's involvement. As the creative force behind NewJeans, Min Hee-jin's relationship with both HYBE and ADOR turned sour following an ongoing feud with HYBE that started in April 2024. HYBE sued her for breach of contract, usurping ADOR's management, taking away NewJeans, and leaking business secrets.
In August 2024, she was fired as the CEO of ADOR by the label's independent board of directors. On October 17, Min Hee-jin was rehired as an inside director at ADOR, but tensions reportedly remained. On November 20, Min Hee-jin resigned from ADOR and HYBE after months of conflict.
On November 13, NewJeans sent a certified demand letter to ADOR to reappoint Min Hee-jin as the label's CEO by November 28 or they would terminate their contract. The girl group's insistence on her reinstatement as CEO pointed to her continued influence and rapport with the members.
The KMCA also issued a specific warning regarding allegations of industry tampering, following reports that Min Hee-jin may have influenced NewJeans’ decisions to terminate their contracts. The KMCA also ordered the girl group to "faithfully fulfill your exclusive contract" or to "humbly await the judgment of the judiciary."
"You must faithfully fulfill your exclusive contract and negotiate through sincere dialogue with the agency, but if you cannot reach an agreement, you must humbly await the judgment of the judiciary."
The KMCA’s involvement underscored the broader industry implications of this dispute. As a regulatory body, the Korea Music Content Association (KMCA) warned that such conflicts could damage the reputation of K-pop as a global cultural export. The association urged all parties to resolve their differences amicably while adhering to contractual obligations and ethical standards.
