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On Monday, December 23, KOSPO, the Korean Startup Forum, commented on the ongoing conflict between HYBE and ADOR. In a statement, the company expressed that the feud they've been having over the investment contract around NewJeans can be detrimental to the investment ecosystem.
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They added that this conflict threatens the foundations of a startup ecosystem based on the "principles of trust and responsibility." Therefore, through the statement, KOSPO also warned HYBE and its subsidiary, ADOR, that a continuation of this conflict would reach a point where recovery of the investment ecosystem would be difficult.
Here's part of KOSPO's statement:
“An investment contract is a legally binding promise based on mutual trust. If the interpretation and execution of the contract are unilaterally nullified, it will damage the essence of investment decisions and create widespread distrust across the investment ecosystem that will be difficult to recover.”
KOSPO comments on the contract conflict between NewJeans, HYBE, and ADOR
On December 23, KOSPO talked about the tension between NewJeans, HYBE, and its subsidiary, ADOR. KOSPO is an organization that was founded in 2016 comprising approximately 50 startups at the beginning of its development. Its current aim and intention, therefore, is to support the startup environment and express shared interests.
Here's what they stated:
“The recent conflict between HYBE and its subsidiary over the investment contract is a serious issue that could undermine the principles of trust and responsibility, which are the foundation of the investment ecosystem.”
They continued to comment on how the erosion of these foundational values could reduce the investors and their willingness to invest, thereby impacting the entire Korean startup ecosystem. Therefore, KOSPO emphasized how the issue at hand was larger than just a matter of individual contracts between parties.
"A decline in social trust regarding investment contract performance seriously dampens investment sentiment and has a fatal impact on the entire ecosystem."
However, HYBE, ADOR, or NewJeans have not responded or addressed this statement.
The controversy began when the K-pop girl group, NewJeans held an emergency press conference on November 28, declaring their contract termination with the agency, ADOR, and its parent company HYBE.
This was due to ADOR's failure to meet the members' demands. NewJeans released a 14-day ultimatum, asking ADOR to take action and perform certain tasks, and a lack of the same would lead to the members' termination from the agency. The emergency contract was held on the last of the ultimatum, and since ADOR failed to meet the demands, the girls decided to leave the agency.
However, the group has still been active in the industry without using the name NewJeans. Instead, they've been promoting themselves through their individual names. Regardless, ADOR has been insistent about NewJeans' return to the agency. They mailed the members and also released a statement regarding the same.
Additionally, the agency also filed a lawsuit against the K-pop girl group, NewJeans, to confirm the validity of their exclusive contract. They've also been claiming that the two parties' contract remains effective until July 2029.
