NewJeans’ Declaration of Independence and the Court’s Strong Intervention

When the members of NewJeans held a press conference last November, many fans supported them. I still remember getting emotional when they said, “We will now walk our own path.” 🥹 However, the counterattack from Ador was much stronger than expected. The court ruled that if the members act independently, they would have to pay an astonishing compensation of 1 billion won for each activity. That’s a whopping 5 billion won if all five members act together! I even checked the calculator when I first heard this news to confirm the number. 😱

10 Billion Won per Person? A Closer Look at the Ruling

The decision document from the Seoul Central District Court had many interesting points. The court emphasized that “Ador invested hundreds of billions of won for the success of NewJeans.” Indeed, experts calculated that the costs of training before debut, production costs for music videos, and promotional expenses add up to an enormous amount. 💸 However, the problem is that there is no clear standard for how to calculate these investment costs and how much the artists need to repay. The 1 billion won amount set by the court apparently wasn’t derived from any special calculation. It seems to have been decided based on the logic that it should be ‘sufficiently intimidating’. 😅

The Dream of Rebirth as NJZ Thwarted

The new team name ‘NJZ’ that the members had prepared was a simple yet impactful name, but unfortunately, it is on the verge of becoming a mere fantasy. 🎤 Personally, I wanted to see them grow as independent artists, but the wall of reality is too high. Especially, this ruling results in limiting the members’ rights to engage in creative activities beyond just monetary issues. Many fans are concerned about whether they can wait until the contract ends in November 2024. 😔

Agency vs. Artist: Who’s Side Are You On?

The recent incident has led to a huge debate within the fan community. Some argue that it’s natural for the agency to assert its rights proportional to its investments, while others say that excessively controlling the artists’ lives is a problem. 🤔 I think the truth lies somewhere in the middle. According to data from the Korean Entertainment Law Research Institute, most idol contracts include clauses for the recovery of investment funds, but the amounts are often unrealistically high. This is especially true for groups like NewJeans that achieve considerable success early on. 😮‍💨

Learning from Past Cases in K-Pop’s Contract Wars

The NewJeans case is not the first of its kind. Do you remember the 2009 TVXQ incident? At that time, the members applied for a temporary injunction to suspend the effect of their exclusive contract with SM Entertainment. The court allowed some members to terminate their contracts, stating that “a 13-year contract term is excessively long.” 🕰️ However, a critical difference from the NewJeans case is that in the TVXQ incident, a specific compensation amount was not stipulated. This highlights how groundbreaking this ruling is. Experts warn that this ruling will serve as a strong precedent for similar cases in the future. ⚠️

5 Essential Facts Every Fan Should Know

1. The ruling is not final! There’s still a possibility for appeal ✍️
2. The members of NewJeans are still active under Ador 🎤
3. The 1 billion won compensation applies only to independent activities (not personal life) 💃
4. They are expected to gain freedom after their contract ends in November 2024 📅
5. The best support from fans is to support official activities 💕

Lessons from This Incident

This incident has led me to contemplate many things. On one hand, the fact that groups like NewJeans could not exist without the agency system is undeniable; on the other hand, the importance of having an environment where successful artists can freely express their creativity is crucial. 🎭 Especially as the K-Pop market has globalized in recent years, the contractual clauses involving foreign companies and overseas activities are becoming increasingly complex. According to a conversation I had with a global music business expert, clauses regarding AI utilization and metaverse activities are expected to be added to contracts in the future. 🤖

What do you think? In your opinion, which aspect is more important: protecting the agency’s investments or ensuring the rights of the artists? 💬