KMF expresses grave concern over NewJeans’ contract termination controversy.

The Korea Management Federation (KMF) released a statement on December 3rd KST expressing deep concern over the escalating conflict between ADOR and NewJeans regarding the group’s contract termination. The statement read, “The recent intensification of disputes between ADOR and NewJeans is having a profoundly negative impact on our cultural and entertainment industry.” The federation added, “We are sharing this statement from the perspective of industry professionals to address the issues surrounding the group and their contracts, the public’s perception, and the disillusionment felt by industry workers, hoping for another leap forward in our cultural and entertainment industry.”

KMF emphasized the importance of mutual trust as the foundation of the cultural and entertainment industry, stating, “Contracts between artists and agencies are built on decades of trust and consideration, and issues arising should not automatically lead to contract termination.” The statement continued, “However, the actions of NewJeans suggest a lack of effort or intent to maintain the contract from the outset.”

The federation criticized NewJeans’ contract termination claims as baseless, asserting, “Korean law fundamentally upholds the principle of protecting established contracts. Until termination is finalized, the contract’s validity is protected. Therefore, NewJeans’ claims of contract termination are groundless.”

KMF also stressed the collaborative nature of artist-agency relationships: “Artists and entertainment agencies are not in a simple employment relationship; their work is conducted in a mutually supportive partnership. Artists are expected to cooperate with their agency, using their talents and abilities to the fullest, while agencies provide all necessary support for the artists’ growth.”

The statement warned that disputes like this, if resolved solely through unilateral declarations, could have devastating consequences for the industry. “If contracts can be terminated simply through declarations, how can the validity of exclusive contracts be guaranteed? Who would invest in such uncertain agreements?” KMF asked.

The federation urged caution, stating, “Contract termination should be approached with extreme care, and discussions should focus on maintaining and improving the contract rather than terminating it outright.”

KMF concluded by emphasizing the importance of the “invest first, recover later” model in the entertainment industry. “Current laws fail to account for the position of agencies that make significant investments in their artists. Approaches like the one taken by NewJeans could destabilize the foundation of our industry,” it said. The federation called on NewJeans to retract their stance and engage in dialogue with their agency to resolve the dispute amicably. “We sincerely hope the situation does not escalate further,” it added.

KMF also urged government agencies and stakeholders to revisit and discuss policies to support the long-term development of the cultural and entertainment industry. “We will closely monitor this matter and actively respond to ensure the continued growth of our industry,” the federation concluded.

NewJeans had previously announced their contract termination during an emergency press conference on November 28th, while ADOR maintains that the contract remains valid until 2029.

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