Shinhan Financial Group has decided not to renew their advertising model contract with NewJeans.

The decision follows NewJeans' recent announcement to unilaterally terminate their exclusive contract with their agency, ADOR, which has led to a growing dispute between the two parties.  

According to industry sources on December 13, Shinhan Financial Group decided not to extend its advertising contract with NewJeans, who had been serving as the brand's official model for the group’s integrated platform "SOL" since last year.

A Shinhan Financial representative stated, “Our advertising contract for the ‘Super SOL’ brand with NewJeans will end in December, and it will not be extended.” However, they added, “Since the model contracts were made per product and subsidiary, advertisements featuring NewJeans that were already filmed will continue to be aired until March.”

Shinhan Financial launched its 'Super SOL' super app last year, consolidating key features from its Shinhan Bank, Card, Securities, Life, and Savings Bank apps into one platform. 

To ensure brand consistency, its affiliates collectively signed an advertising model contract with NewJeans. Contract periods for Shinhan Bank and Shinhan Card are set to end in December, while Shinhan Investment Securities will continue until March next year.

Given that the main contract with NewJeans as the face of the 'Super SOL' brand is ending, it is unlikely that other product or subsidiary advertisements will be renewed. The original purpose of hiring NewJeans was to establish a unified brand image for Super SOL across all Shinhan affiliates.

Shinhan Financial originally hired NewJeans as its model to strengthen its brand appeal to the MZ Generation (Millennials and Gen Z). However, with the growing dispute between NewJeans and their agency ADOR, the company found itself in a precarious situation.

On November 29, NewJeans held a press conference to announce that they had unilaterally notified ADOR of their intent to terminate their exclusive contract. In response, ADOR filed a lawsuit with the Seoul Central District Court to confirm the validity of the contract. This legal conflict created confusion for advertisers regarding who they should pay for contracts involving NewJeans.

Despite the ongoing dispute, NewJeans continues to participate in schedules arranged by ADOR. However, there have already been signs of constraints on their activities. For instance, at certain events, they were reportedly unable to refer to themselves as “NewJeans”, reflecting the complexities of the ongoing contract dispute.

Further complicating the situation are allegations that Min Hee Jin, the former CEO of ADOR, is behind the group's attempt to leave the agency. Some reports suggest that Min Hee Jin encouraged NewJeans to part ways with ADOR.

In particular, an exclusive report from Dispatch claimed that Min Hee Jin had met with Chairman 'A' of Company 'D' at a cafe in Cheongdam-dong, supposedly through an introduction from a relative of a NewJeans member. Dispatch even captured a photo of the alleged three-hour meeting. In response, Min Hee Jin's side filed a lawsuit against the reporters who wrote the article, citing defamation under the Information and Communications Network Act.

For advertisers like Shinhan Financial, extending contracts with NewJeans is seen as risky. Engaging in separate advertising deals directly with the individual members could potentially lead to legal entanglements. Advertisers could be accused of violating ADOR's rights, as the exclusive contract prohibits members from engaging in solo activities or working with third-party entities.

According to industry experts, under current exclusive contract regulations, all activities by the members — whether through an external agency or a family-run company set up by the members or their parents — are classified as a breach of contract. This is in line with Articles 2, 6, and 14 of the Ministry of Culture, Sports, and Tourism's Standard Exclusive Contract for entertainers.

These clauses stipulate that all entertainment activities must be conducted through the agency, and artists cannot negotiate appearances or offer entertainment services through third parties without prior agency approval. This regulation applies not only to external agencies but also to family-run companies established by members or their parents.

Given these complications, it is unlikely that other advertisers will pursue new contracts with NewJeans soon. Legal risks and potential lawsuits make such agreements a risky endeavor for advertisers.

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