It has been confirmed that NewJeans sought to sign a direct advertising contract with a global luxury brand, bypassing their agency, ADOR.
This move has created confusion in the advertising industry and raised legal concerns over potential breaches of exclusive contracts and resulting liquidated damages. Despite the ongoing legal dispute over their exclusive contract with ADOR, New Jeans has pursued high-risk actions, such as launching independent social media accounts and seeking direct advertising agreements.
According to Ten Asia’s report on the 18th, New Jeans recently expressed their intention to sign a direct two-party contract with a global luxury watch brand through ADOR’s manager, identified as A. Manager A reportedly contacted the advertiser directly to negotiate the terms. It was also revealed that New Jeans attempted to contact another luxury brand through a different former ADOR manager, identified as B.
At a previous press conference addressing the termination of their exclusive contract with ADOR, NewJeans claimed they would minimize damages to advertisers by honoring pre-existing agreements. However, the current situation involves new contract negotiations initiated after declaring the termination of their contract with Adore, complicating their legal standing. Critics have pointed out the contradiction of using Adore employees to facilitate new agreements while asserting their contract with the agency has ended.
In response to these developments, ADOR has taken immediate action by placing Manager A on standby and informing Company O and other brands that signing two-party contracts with NewJeans would violate their exclusive contract. This situation has further unsettled the advertising industry, as brands fear potential lawsuits from Adore if they comply with NewJeans’ demands.
The standard exclusive contract issued by the Ministry of Culture, Sports and Tourism requires all entertainment activities to be conducted through the agency. Artists cannot independently negotiate agreements without agency approval, and third parties involved in contract breaches may face legal liability.
An industry insider remarked, “Given that a lawsuit is already in progress, it would have been prudent to wait before pursuing independent agreements. The rush to secure new contracts, particularly in advertising, which is a highly sensitive sector, appears overly hasty and perplexing.”
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