ADOR Releases Official Statement on Application for ‘Injunction to Preserve Agency Status and Prohibit Advertising Contracts’

Full Text of ADOR’s Official Statement Below

Last week, ADOR filed an injunction with the Seoul Central District Court against the NewJeans members seeking “preservation of agency status and prohibition of advertising contract execution.”

This injunction is intended to obtain recognition that ADOR holds the position of management agency under the exclusive contract until the first-instance judgment is rendered in the “lawsuit to confirm validity of exclusive contract” that ADOR filed with the Seoul Central District Court on December 3 of last year, and to prevent NewJeans members from independently entering into advertising contracts and conducting advertising activities without ADOR’s approval or consent.

ADOR’s decision to file this injunction was made to prevent confusion and harm to third parties such as advertisers, as the NewJeans members, who unilaterally declared termination of their exclusive contract, have continued to contact advertisers independently and attempt to execute contracts.

The fact that the members’ unilateral claim of exclusive contract termination is unjust will be confirmed through the lawsuit to confirm validity of exclusive contract that ADOR previously filed. However, since it may take a considerable amount of time until a final judgment is rendered, ADOR was compelled to additionally file this injunction to urgently prevent the confusion that is currently occurring.

This injunction filing reflects ADOR’s intention to continue working with the NewJeans members. If the market and industry confusion caused by the members’ independent actions continues, a decline in the brand value of NewJeans, ADOR’s only artist, will be inevitable, and as a result, ADOR may lose its competitiveness as an agency and face a management crisis. This also reflects our judgment that even if a final judgment confirming the validity of the exclusive contract is rendered several years from now, restoration to the original state may no longer be possible by then.

In the injunction application, ADOR appealed to the court that “for the sake of NewJeans as well, an opportunity must be provided to correct mistaken judgments or actions before legal liability expands uncontrollably.” ADOR also conveyed the industry-wide concern that “if a precedent is set where one unilaterally declares termination of an exclusive contract and engages in independent entertainment activities without going through legal procedures, the incentive to invest in the entertainment industry will disappear, shaking the foundation of the K-pop industry and causing it to significantly contract.”

Meanwhile, in accordance with ADOR’s position that the exclusive contract with NewJeans remains valid, ADOR has continued to provide all personnel and facilities for NewJeans’ entertainment activities without change and plans to continue doing so. Additionally, ADOR has been receiving proposals for various projects including advertisements and events from external parties, and internally has already completed planning for this year’s activities including the release of a full-length album and fan meetings, and has conveyed its desire to communicate sufficiently with the NewJeans members.