It has been confirmed that the five members of the group NewJeans, who claimed an unilateral "termination of the exclusive contract," are utilizing the resources of their agency, Ador, without any restrictions.
Ador is maintaining support while claiming "the exclusive contract remains in effect," but there is an atmosphere of internal conflict. Rather than using the agency's capital to block activities by filing injunctions citing breaches of the exclusive contract, it appears they intend to fulfill the obligation of good faith for now in preparation for future legal disputes.
NewJeans is the only artist under Ador, one of the main agencies of the country's largest entertainment company, HYBE.
According to industry sources on the 25th, despite the declaration of the exclusive contract termination, the members of NewJeans continue to freely enter and exit the HYBE building and use exclusive spaces and facilities almost daily (except during overseas schedules).
This is reportedly for the purpose of fulfilling schedules such as the promotion in Japan earlier this month and upcoming award ceremonies and concerts at the end of the year (as guests at the general group Yoasobi's concert).
The relevant spaces and facilities are places where Ador pays rental expenses based on its contract with HYBE. It has been determined that NewJeans is freely utilizing not only the exclusive space of Ador but also common areas within the building.
It is said that the members of NewJeans are also using Ador's human resources as before, citing the need to fulfill their existing schedules. As a result, personnel from the production team, responsible for choreography, music, and staging, as well as support team members, are conducting their duties without any changes.
However, there are criticisms that it is contradictory for NewJeans to continue benefiting from capital invested by Ador. NewJeans declared the termination of the exclusive contract during a press conference on Nov. 28, citing a breakdown of trust as the reason.
They have also opened an unofficial account "jeanzforfree" on Instagram and are continuing to distance themselves from Ador by featuring their real names on the cover of a hanbok photo shoot they did in collaboration with Vogue Korea instead of the NewJeans team name.
During the press conference, the members stated, "With the termination of the contract, the exclusive effect is nullified, so there is no obstacle to our activities." Ador has retaliated by filing a lawsuit to confirm the effectiveness of the exclusive contract. According to the exclusive contract, the duration of NewJeans' contract is until July 31, 2029.
There are similar concerns regarding foreign member Hanni's visa renewal. Currently, Hanni, who holds dual citizenship in Australia and Vietnam, is active under an artist entertainment (E-6) visa issued through Ador. Under current immigration laws, if a foreigner holding an E-6 visa changes their place of employment (agency), they must report this within 15 days. Otherwise, the visa becomes invalid. If NewJeans' claim that the exclusive contract was terminated on the 28th of last month holds true, then the visa would already be expired.
It is understood that obtaining consent from the original agency is required for reporting a change, but Hanni has not made any particular requests to Ador. Although not affiliated with Ador, Hanni is staying in the country under the effects of Ador's visa.
In the legal community, it is observed that until legal judgments are made, the use of capital by NewJeans could influence future penalty lawsuits. Attorney Kim Jin-wook (Juwon Law Firm) noted, "Determining who is at fault regarding the termination of the contract requires a court's judgment," but added, "If the fault lies with NewJeans, the obligation for restoration of damages related to penalty payments could include expected revenue during the remaining contract period and damage to the agency's image due to support received for activities."
An anonymous source in the entertainment industry stated, "If NewJeans continues its entertainment activities while utilizing Ador's human and material resources, it would be difficult to argue that a breakdown of the trust relationship has occurred," and commented, "Continuing activities in this ambiguous situation without a legal judgment seems to amplify unnecessary criticism."