NewJeans Faces Legal Challenges Over Direct Brand Deals Amid Contract Dispute

The K-pop group NewJeans has reportedly attempted to negotiate ambassador contracts with global luxury brands independently, bypassing their agency, ADOR. This move has stirred confusion in the advertising industry and complicated potential breach of contract lawsuits.

According to a report by TenAsia on the 18th, NewJeans, through their manager A, expressed interest in a direct contract with a global luxury watch brand, O. Manager A contacted the brand directly to discuss the contract. Additionally, another former manager, B, who left ADOR, was found to have attempted to negotiate with another luxury brand on behalf of NewJeans.

In a press conference announcing the termination of their exclusive contract, NewJeans stated they would minimize damage to advertisers by honoring existing agreements. However, the situation has changed as it was revealed that they pursued new contracts through ADOR members after declaring contract termination. This could be a disadvantage in any breach of contract lawsuit. The attempt to secure new contracts through ADOR employees, despite claiming to have ended their contract with ADOR, has been criticized as contradictory.

As evidence of NewJeans' contract violations continues to emerge, ADOR has taken immediate action. They have suspended manager A, who contacted brand O without the agency's involvement, and informed both brand O and another luxury brand that a direct contract with the artist would violate their exclusive contract.

This has intensified confusion in the advertising industry. Advertisers are reportedly concerned about the potential legal implications of engaging in direct contracts with NewJeans, fearing involvement in a breach of contract lawsuit with ADOR. Global luxury brands are closely monitoring the situation and conducting legal reviews.

According to the current Ministry of Culture's standard exclusive contract, all entertainment activities of an artist must be conducted through their agency. Artists cannot independently negotiate appearances or provide cultural services without prior approval from their agency. Third parties involved in such violations may also face civil legal responsibilities.

An industry insider commented, "In a situation where a lawsuit has been filed, it would be more prudent to wait and proceed cautiously. The rush to establish independent social media accounts and secure advertising deals is perplexing. Advertising issues are highly sensitive in the industry, and this approach seems too hasty."