"NewJeans,” who unilaterally declared the termination of their exclusive contract with their HYBE-affiliated agency ADOR, have been in a legal dispute after ADOR filed a “lawsuit to confirm the validity of the exclusive contract” late last year. The third hearing was held on July 24, concluding the court proceedings after two failed mediation attempts. The final judgment is scheduled for October 30.
Ahead of the first trial verdict, 32 prominent South Korean figures have released a statement opposing the ban on NewJeans’ activities. The signatories include former National Assembly member Song Hye-won, Catholic University education professor Song Ki-seon, the head of the Civic Economic Research Institute, a former Supreme Council member of the Reform Party, a former president of the Korean Medical Association, a former MBC reporter, a former ambassador to Vietnam, lawyers, and current affairs commentators, among others.
In the statement released on the 22nd, they expressed regret over the current situation:
“We find it deeply unfortunate that due to a provisional injunction from the Seoul Central District Court, NewJeans are, in effect, prohibited from engaging in any form of entertainment or artistic activities.”
They further pointed out structural issues in Korea’s entertainment industry:
“Unlike the United States, which is an advanced nation in the entertainment industry and has a ‘certified agency system’ to protect artists’ legal interests, South Korea lacks such a framework. Instead, the Ministry of Culture, Sports and Tourism’s standard contract forces an artist to be entirely subordinate to a single agency for seven years, while placing nearly all obligations on the artist alone. The contract itself is the problem.”
The statement also highlighted the profits NewJeans brought to HYBE, noting:
“HYBE established ADOR as a subsidiary in October 2021 with a capital investment of 16 billion KRW. After NewJeans debuted in July 2022, HYBE’s operating profit alone has been nearly four times that initial investment.”
They added:
“In the United States, where certified agencies oversee such contracts, artists can secure the right to renew their contracts or obtain free-agent status through opt-out clauses. We urge the Korean government to take action on a national level to prevent a situation in which, due to a single court ruling based on a flawed standard contract, a globally recognized idol group, a potential national asset, is effectively dismantled and barred from pursuing the activities they wish to do.”
The statement concluded with a policy proposal:
“As a fundamental solution to the frequent contractual disputes and conflicts between artists and entertainment agencies, a problem unique to Korea, we strongly urge the government to actively consider introducing a U.S.-style certified agency system.”
Currently, NewJeans have been on hiatus for over six months, since March. The injunction prohibiting independent activities remains in effect, meaning the group cannot resume activities until at least after the first-trial verdict in October. If the court rules against them, their suspension may be prolonged even further.
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