NewJeans’ Artistic Freedom: Breaking Free or Breaking the Bank?
The K-pop landscape is witnessing a shift. HYBE, the big entertainment that created superstars like BTS and SEVENTEEN, faces a possible separation from its subsidiary label ADOR, the label nurturing rookie girl group “NewJeans” (Allkpop, 2024).
To know more about NewJeans, see the table below.
| Company | ADOR (under HYBE) |
| Debut Date | July 22, 2023 |
| Members | Minji (Kim Min-ji) – Leader, Vocalist Hanni (Hanni Pham) – Vocalist Danielle (Mo Danielle Marsh) – Vocalist, Rapper Haerin (Bae Haerin) – Vocalist Hyein (Hyein Park) – Maknae (youngest member), Vocalist, Dancer |
| Genre | K-Pop (Pop, Dance) |
| Concept | Fresh, youthful, energetic, girl-crush |
| Debut Single | “Attention” (from the album “New Jeans”) |
| Achievements | Achieved “all-kill” on Korean music charts with their debut single “Attention” (meaning #1 on all major music charts) Million sellers with their debut album “New Jeans” Won “Rookie of the Year” awards at various award shows (specific awards would need further research) |
Terminating NewJeans Contracts: HYBE vs. ADOR
ADOR desires independence and appears determined to forge its path. ADOR, spearheaded by Min Hee-jin, seems intent on achieving its independence, despite NewJeans being relatively new in the industry with a substantial portion of their contract remaining. There are speculations surrounding the industry that point towards a desire for greater creative control and the freedom to chart ADOR’s artistic direction. Min Hee-jin, a powerful figure within HYBE, with significant shareholding, is said to be preparing for potential legal battles because of the contract termination penalties.
Here is what HYBE has to say about this issue.
The NewJeans Factor: Early Success and Rising Costs
CEO OF ADOR
The issue does not settle with just termination of contracts, it has costs and penalties that need to be paid. That is the price of freedom.
So, what is the cost of this separation?
The decision to break away is not easy and cannot be achieved without financial consequences. Ending the contract with NewJeans could incur hefty penalties for ADOR. The Korean Fair Trade Commission (KFTC) establishes standard contracts in the K-pop industry, and these contracts come with hefty termination clauses.
- The NewJeans Factor: NewJeans has already created expectations because of their debut success. Their rapid rising recognition and climb to fame saw them recoup initial investment within a mere two months. The explosive growth suggests a projected rise in their monthly revenue, directly impacting the potential termination penalty.
- The KFTC Standard Contact: According to the KFTC contract, the termination penalty is calculated by multiplying the monthly average revenue of the last two years by the remaining months left. With an estimated 60 months remaining and the projected high monthly average revenue, the potential penalty could reach a high figure, exceeding several hundred billion won (hundreds of millions USD).
Negotiations and Potential Solutions
What are the negotiations and potential solutions for this issue?
Here are some possible solutions:
- Negotiation and Compromise: Open communication and compromise between HYBE and ADOR can pave the way for more peaceful separation. This can involve a revised contract that could allow ADOR’s freedom while facing the consequences of financial burden during the separation.
- External Funding: ADOR should consider raising funds from external investors to lessen the termination cost. However, securing significant investment to cover contract penalties might not be the most attractive option for potential investors.
- Staying under HYBE vs. Building New: Remaining under HYBE will not have to face financial penalties but it might limit the creativity of ADOR which can affect ADOR’s long-term vision. On the other hand, building a new company while carrying financial penalties of the contract termination process is risky and a challenge.
Each potential solution has pros and cons and there are needs to be sacrificed. Well, it would still depend on ADOR on what they choose to do, and what is more important to them.
Uncertain Future for NewJeans
Because of the growing battle, the future of NewJeans has become uncertain. Will they continue under ADOR if a separation occurs? Will they operate under HYBE, which faces creative limitations on artistic and creativity? These questions are heavy.
Financial aspects are important in the entertainment industry, but we should also acknowledge that artistic freedom is as important as it is. Creative control allows artists and agencies like ADOR to express unique visions and connect with audiences more authentically. This can lead to artistic innovation, a more diverse K-pop landscape, and a richer experience for fans.
The potential separation between HYBE and ADOR is a significant moment in the K-pop industry. It highlights the financial web inside the artists, agencies, and the evolving K-pop community. As the issue progresses, the world is watching to see how this issue will unfold and how it may impact the future of NewJeans, HYBE, ADOR, and the broader K-pop industry.
This incident serves as an opportunity for discussions on artist development, fostering a healthy balance between financial responsibility and artistic freedom within K-pop contracts. See how the situation progresses and get to know more about NewJeans!
Mia Park’s journey into KPOP began during their university days, where they studied music theory and performance arts. With a deep admiration for Korean pop culture, Mia immersed herself in the vibrant world of KPOP, focusing on the industry’s top agencies and diverse concepts.