"Current approach by NewJeans is an extremely malicious method"— Korea Management Association addresses NewJeans-ADOR contract dispute

On December 3, 2024, a South Korean media outlet ET News reported that the Korea Management Association (KMA) had spoken out about NewJeans’ contract termination with ADOR. They labeled the group’s actions as “malicious” and detrimental to the South Korean entertainment industry.

The KMA, an influential body in the cultural and arts sector, issued a formal statement urging both sides to communicate and resolve the dispute. They further emphasize the importance of maintaining trust in exclusive contracts. KMA's Han Mae-yeon stated:

"The popular culture and arts industry respects the exclusive contracts made between artists and their agencies. Even if a problem arises, it does not become a condition for the termination of the contract. New Jeans' current position of ignoring all procedures can only be interpreted as not considering the mutual efforts necessary to maintain the contract from the beginning or having no intention of doing so."

As per ET news, they further continued:

"Our industry regarding popular singers has, from the past to present, been operated under the principle of 'invest first, regret later.' In cases where a contract is maliciously terminated, there is no way to maintain the contract other than ultimately claiming damages. From this perspective, the current approach by New Jeans is an extremely malicious method that can shake the foundation of our popular culture and arts industry."

The association also highlighted that exclusive contracts are built on years of mutual trust and investment between artists and agencies.

According to the KMA, NewJeans’ unilateral termination disregarded these principles and failed to consider the necessary mutual efforts to preserve the relationship.

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More about KMA's statement on NewJeans and ADOR's ongoing conflict

The KMA further noted that long-term contracts, often initiated during the trainee stage, involve substantial financial and emotional investments by agencies.

The association stressed that dissolving agreements through unilateral claims could discourage future investments and destabilize the industry.

The KMA urged NewJeans to reconsider their decision and prioritize communication to avoid worsening the situation.

It also stated the need for proper reforms to strengthen contract enforcement and protect the interests of all parties involved in the entertainment sector.

For those who are unaware, on November 28, 2024, all five members of NewJeans, Minji, Hanni, Danielle, Haerin, and Hyein held an emergency press conference to announce the termination of their contracts with ADOR.

The group admitted that the decision stemmed from alleged breaches of contract by the label and its parent company, HYBE.

Among their complaints were internal disputes, mistreatment, and the non-reinstatement of former CEO Min Hee-jin. They alleged these factors had broken their trust in the agency beyond repair.

NewJeans outlined their efforts to resolve the issues before the announcement, including issuing a letter of certification to ADOR on November 13, demanding compliance within 14 days.

When ADOR failed to meet these conditions, the group declared their contracts nullified as of November 29.

ADOR responded by denying all accusations of contractual breaches, maintaining that the agreements were still valid. The agency expressed regret over the group's public announcement. They called it premature and a breach of professional protocol.

ADOR also reaffirmed its willingness to engage in discussion, emphasizing its continued support for NewJeans as global artists.

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As NewJeans emphasizes its commitment to moving forward independently, ADOR maintains its stance, keeping the dispute in the public spotlight. Fans eagerly await a resolution from both parties.