NewJeans Leaves ADOR: Urgent Need for New Company Formation Amidst Visa Extension Challenges

NewJeans’ Urgent Move Towards Independence

The recent decisions made by the music group NewJeans to establish their own management company are driven by significant urgency. Key developments surrounding their situation have raised eyebrows, particularly relating to their contractual ties with ADOR.

Concerns from the Entertainment Sector

On December 19, the YouTube channel “Entertainment President Lee Jin-ho” broadcasted a video titled “ADOR? What Can You Even Do… NewJeans is Taking a New Path.” Within this segment, Lee Jin-ho shared his apprehensions about NewJeans navigating an “unimaginably unprecedented path.”This statement highlighted their unilateral contract termination and the conspicuous absence of the group’s name in a recent Vogue photoshoot, as well as their independent advertisement agreement with a luxury watch brand.

Financial Ramifications and Legal Concerns

Lee Jin-ho elaborated on the potential repercussions of NewJeans’ bold choices, indicating that their actions could incur financial losses for ADOR and possibly substantial penalty fees. He cautiously noted that the legal dispute regarding the validity of the exclusive contract may extend over the next one to two years. Should the court ultimately rule that NewJeans is indeed bound by their exclusive contract, they could theoretically return to ADOR with minimal consequences, especially if ADOR chooses not to pursue penalties at that time.

Additionally, he remarked on the Vogue photoshoot, where only the individual members were credited, alongside Min Hee-jin, the former ADOR CEO. While acknowledging Min Hee-jin’s previous involvement, Lee noted that leveraging ADOR’s resources while neglecting to credit NewJeans raises questions regarding fairness and ethical practice.

Immediate Needs for Agency Representation

Further complicating matters, Lee Jin-ho pointed out that the foreign members of NewJeans, particularly Danielle and Hanni, face a pressing need for proper agency representation to undertake economic activities within South Korea. Their current lack of agency could affect their visa status, thereby jeopardizing their ability to continue performing. Thus, forming their own company is not just a strategic move for independence but is essential for addressing these legal and operational challenges.

Speculations about a Family Corporation

Amidst these developments, speculation has arisen surrounding the possibility of NewJeans forming a “family corporation.”Reportedly, each member received a substantial settlement of approximately 5.2 billion KRW from ADOR last year. With each member potentially investing around 500 million KRW, the establishment of a family-run company could be feasible. However, entering into a third-party agreement would pose significant legal challenges, particularly because NewJeans asserts they have already terminated their contracts.

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