Federation of agencies urges NewJeans to retract contract termination

K-pop girl group NewJeans / Newsis

The Korea Management Federation (KMF) expressed its concerns Tuesday over NewJeans' recent declaration to terminate its exclusive contract with Ador, urging the group to reconsider its decision.

In a statement, the federation of entertainment agencies said that such actions could destabilize the core principles of Korea's entertainment industry. “The escalating conflict between Ador and NewJeans is already negatively impacting our culture and entertainment industry,” it said.

Emphasizing the importance of mutual trust between artists and agencies, the organization said, “The entertainment industry thrives on mutual respect for exclusive contracts between artists and their agencies. These agreements are built on decades of accumulated trust and understanding. A dispute cannot simply nullify these contracts — it is not a valid condition for termination.”

The statement came five days after the five-member K-pop girl group held a press conference to terminate its exlcusive contract with Ador.

The KMF criticized NewJeans' approach, suggesting it overlooked the effort required to sustain a professional relationship. “Korean law fundamentally protects contracts that have been signed. When disputes arise, they are handled by determining accountability, not through abrupt declarations of termination," it said. "NewJeans' claims lack legal grounding and undermine the contractual protections that ensure fairness.”

The organization warned of the ramifications of unilateral terminations. “An arbitrary declaration of contract termination could severely damage the trust that underpins the entire entertainment industry," it said. "Exclusive contracts are not merely employment agreements — they represent long-term partnerships based on shared goals.”

The KMF also highlighted the vulnerability of entertainment companies, which operate under a “pre-investment and post-recovery” model.

“Companies that invest heavily in nurturing rookies are inherently in a weaker position,” the federation said. “Until their initial investment is recovered, agencies must prioritize maintaining and protecting contracts. In disputes, agencies often have no option but to seek damages after termination, which does not sufficiently protect their interests.”

The federation also stressed the dangers of setting a precedent. “Allowing a contract to be nullified through unilateral declarations is deeply troubling. It could undermine the long-term agreements and substantial investments that form the backbone of our entertainment industry.”

The KMF urged NewJeans to reconsider its stance and return to dialogue with Ador. “We hope NewJeans retracts its position and engages in constructive discussions with the agency. Resolving this issue amicably is in the best interest of both parties and the industry as a whole.”

NewJeans member Hanni, second from right, speaks during a press conference on the termination of the group's exclusive contract with Ador, Thursday. From left are Haerin, Danielle, Minji, Hanni and Hyein. Yonhap

NewJeans held an emergency press conference on Nov. 28, announcing the termination of its exclusive contract with Ador. It accused the agency of failing to fulfill its duty to protect the members, citing a breakdown of trust. The group also sent a formal notice demanding corrective action, including the reinstatement of former Ador CEO Min Hee-jin.

Ador has denied any wrongdoing, maintaining, “The contract remains valid as per the original agreement until July 31, 2029.”

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.