Korea Entertainment Producers’ Association (KEPA) Releases Position Statement
The recent controversy over the termination of the exclusive contract between NewJeans and their agency is sending shockwaves throughout the entire Korean popular culture and arts industry. K-pop, which is our pride and a cultural asset that the world is watching, is being shaken to its very roots by the NewJeans situation. The Korea Entertainment Producer’s Association can no longer stand by silently and hereby strongly expresses its position.
First, an exclusive contract is not simply a contract but the fruit of mutual trust and promises. We express great concern over the notion that an exclusive contract can be terminated based solely on one party’s claims. Contract termination can only occur when the party claiming it proves legitimate grounds. However, NewJeans has not presented concrete evidence to support their grounds. Moreover, making unreasonable correction demands that go beyond the contractual terms established between the agency and the artist, and holding a press conference to unilaterally announce the termination of the exclusive contract in violation of the contract termination procedures, is extremely irresponsible behavior for a party to a binding contract. This disregards both legal standards and industry practices and deserves strong criticism.
Second, the suspicion that NewJeans is implicated in “tampering”—soliciting artists before the expiration of their exclusive contract—raises even greater concern. Currently, NewJeans is suspected of having internal agency personnel actively collude with third parties to induce contract termination during the exclusive contract period. If these suspicions are true, this could constitute a highly sophisticated, new form of tampering. Tampering is a fatal act that completely destroys trust in the entertainment industry. This is not simply a matter of contract violation but an act of betraying the collaborative relationship that the agency and artist have built together over a long period. If it is true that a famous K-pop artist like NewJeans is implicated in tampering, it will leave an indelible wound on our entire popular culture industry.
Third, the unilateral termination announcement by NewJeans, a third-year group that achieved rapid success, could set a very dangerous precedent that threatens the sustainability of Korea’s popular culture and arts industry. Agencies bear the risk of discovering and nurturing artists, investing enormous time and capital for this purpose. Artist development is the product of mutual trust and dedication that goes beyond a simple business relationship. However, NewJeans, who became global artists overnight with great success from their debut, attempting to bear risks at a point when not even half of their contract period has passed, and the related tampering suspicions, are destroying the relationship between agencies and artists, significantly lowering trust in the industry as a whole, and greatly dampening investment. If this kind of contract termination announcement is tolerated, who would ever invest in Korea’s K-pop market?
The Korea Entertainment Producer’s Association requests that NewJeans withdraw their unreasonable and irresponsible claims as soon as possible, return to their original intentions, and continue their normal activities. Furthermore, if they have been attempting independent entertainment activities domestically or internationally, we strongly urge them to immediately cease such activities and show a forward-looking attitude including dialogue with their agency. We also hope that thorough investigations will be conducted into illegal acts such as tampering suspicions.
Lastly, we earnestly request the National Assembly and government officials.
The popular culture and arts industry begins with corporate capital, but behind the process of creating a star and all the activities involved are the hard work and sacrifices of countless workers employed by those companies. Therefore, as disputes over exclusive contracts with artists and tampering issues are seriously connected to not only the survival of companies but also the livelihoods of the many workers who have been employed in this industry, we once again earnestly request that clear supplementary measures be established to prevent problems like unilateral termination announcements by artists from occurring again.
Thank you.