"Declaring contract termination disregards the fundamental trust in agreements."

The Korea Management Union (KMU) has expressed concern over the NewJeans controversy and issued an official statement on December 3, urging the group to return to their original agency.

The KMU stated, "The cultural and entertainment industry is built on mutual trust, and we respect the exclusivity agreements made between artists and their agencies."

It continued, "These agreements are founded on consideration and trust between artists and agencies. Problems that arise do not automatically justify contract termination."

The KMU criticized NewJeans for their unilateral claim to terminate their contract, stating, "It can only be interpreted as a lack of effort or willingness to maintain the agreement."

The KMU also emphasized, "Our legal system protects existing contracts until they are fully terminated. NewJeans' claims lack justification."

Concerns were raised about the potential adverse effects on the industry. "Such actions could significantly undermine trust in exclusivity contracts across the entertainment sector."

The KMU questioned, "If a declaration alone can nullify a contract, how can its validity be ensured, and who would invest in such uncertain agreements?"

The union elaborated, "Our industry operates on a 'pre-investment, post-revenue' principle. Agencies, having invested upfront, are inherently the weaker party in exclusivity agreements."

When disputes arise, agencies can only hope to maintain contracts or file for damages, exposing them to considerable vulnerability.

The KMU condemned NewJeans' approach as a "malicious method that could destabilize the entertainment industry's foundation."

The KMU urged NewJeans to withdraw their current stance and engage in dialogue with their agency. "We hope the dispute is resolved amicably and does not escalate into a worst-case scenario."

The statement also called for legislative reforms, urging the government and stakeholders to reevaluate current laws to ensure stable agreements and long-term industry growth.

The KMU concluded, "We will not overlook this issue and will monitor it closely, taking proactive measures to support the industry's sustainable development. Thank you."

On November 29, NewJeans held an emergency press conference, claiming their agency, ADOR, had violated its obligations and declared their exclusivity contract void.

ADOR, however, maintains that its contract with NewJeans remains valid. The contract was signed on April 21, 2022, and is set to expire on July 31, 2029.

Full Text of KMU's Statement:

Recent disputes between ADOR and NewJeans have caused significant disruption within the cultural and entertainment industry. We, at the KMU, express our concern over the issues surrounding NewJeans, the exclusivity contract, public perception, and the disillusionment felt by industry professionals. Through this statement, we hope to reiterate the importance of trust in our industry and aim for a brighter future.

The cultural and entertainment industry is built on mutual trust, respecting the exclusivity agreements made between artists and their agencies. This trust is the foundation of a relationship fostered over decades of collaboration, based on mutual respect and understanding. A mere problem in the relationship does not constitute grounds for terminating a contract.

However, the unilateral stance taken by NewJeans disregards all procedures and indicates an unwillingness to preserve the agreement from the outset. The law fundamentally protects existing contracts, addressing disputes through accountability rather than outright termination. Thus, NewJeans' claims are groundless.

Furthermore, such an arbitrary claim for contract nullification undermines the trust embedded in exclusivity agreements, shaking the very foundation of the cultural and entertainment industry. Artists and agencies share a symbiotic relationship, where the former commits to their best abilities while the latter invests and provides support.

Declaring termination through mere assertions poses a grave risk to the industry's long-term sustainability. Contracts that are easily invalidated would deter future investments in long-term projects. We urge caution in addressing such issues, ensuring that any termination decision undergoes rigorous deliberation.

Our industry thrives on a 'pre-investment, post-revenue' model. Agencies bear significant risks by investing in artists early on, often acting as the weaker party in these agreements. Legal frameworks provide inadequate protection for agencies when disputes arise, leaving them vulnerable to opportunistic contract terminations.

This particular case exemplifies how a malicious approach to contract disputes can undermine the industry. We call on NewJeans to reconsider their position and engage in meaningful dialogue with their agency. We sincerely hope this matter is resolved amicably.

Lastly, this dispute highlights the need for legislative reforms to address weaknesses in current laws. We urge government bodies and stakeholders to initiate discussions aimed at creating a more stable and equitable industry framework. The KMU will closely monitor this matter and remain committed to supporting the industry's sustainable growth.