Korea Management Union Expresses Hope for Smooth Resolution of NewJeans’ Dispute with Their Management

Concerns Over NewJeans’ Contract Termination Claims

On December 3rd, the Korea Management Union released a significant statement regarding the recent actions of NewJeans in the pop culture and arts sector. The union emphasized that the industry relies heavily on mutual trust, wherein both artists and agencies honor exclusive contracts crafted over many years of collaboration. Acknowledging the complexities that may arise, the statement reinforced that these challenges do not automatically justify contract termination. NewJeans’ current stance suggests a lack of intention toward maintaining the foundational relationship necessary for contract integrity.

Legal Protections for Contracts

The union further articulated that the legal framework in place is designed to uphold existing contracts and analyze disputes by assessing liability in the event of termination. It highlighted the essential principle of preserving contracts until their official dissolution. Accordingly, they deemed NewJeans’ termination request as unfounded, urging caution against unilateral claims which threaten the validity of contractual agreements and risk eroding trust, a cornerstone of the industry.

The Vulnerability of Investment

In their analysis, the Korea Management Union addressed the industry’s operational framework, particularly the prevalent “pre-investment and post-recovery” model among pop music artists. They noted that once a company invests in nurturing fresh talent, it often places the agency in a vulnerable position throughout the contract’s lifespan. Their priority remains on protecting these agreements until the returns exceed the initial investments made. Current regulations, however, fail to adequately safeguard the interests of companies against malicious contract terminations, limiting them to seeking damages without options for enforcing the contracts’ longevity. This situation, they warned, threatens the foundational stability of the pop culture and arts industry.

Call for Resolution

In closing, the Korea Management Union expressed hope that NewJeans would reconsider their current position and seek open dialogue with ADOR, their management company. They sincerely wished for an amicable resolution to the ongoing dispute, cautioning against the potential escalation of the situation.

Recent Developments

Earlier on November 28th, NewJeans held an emergency press conference just weeks after sending a certified content letter to ADOR on November 13th, outlining their grievances and demands. During this press conference, they announced the effective termination of their contract as of midnight on November 29th, claiming that ADOR lacks the necessary commitment and capability to support the group adequately.

Source: Daum

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