KEPA Criticizes: "NewJeans' Contract Termination Notice Irresponsible... Withdraw Baseless Claims"

[Official Statement] Below is the full official statement from the Korea Entertainment Producers Association (KEPA).

The recent controversy over the termination of the exclusive contract between NewJeans and their agency has delivered a deep shock to the entire Korean pop culture and entertainment industry. K-pop, our national pride and a cultural asset garnering global attention, is now shaken at its very roots due to the NewJeans incident.

The Korea Entertainment Producers Association cannot overlook this situation any longer and hereby expresses its firm stance. First, an exclusive contract is not merely a piece of paper but the culmination of mutual trust and promises. We express great concern over the notion that an exclusive contract could be terminated based solely on one-sided claims. Contract termination can only occur when the party seeking termination provides justifiable grounds.

However, NewJeans has failed to present concrete evidence to support their reasons. In fact, they have not only demanded certain corrections that extend beyond the terms agreed upon between the agency and artist, but also unilaterally announced the termination of the contract through a press conference without following proper termination procedures. Such behavior, from a party to a contract who should act responsibly, is extremely irresponsible.

It disregards both legal standards and established industry practices, and thus deserves to be strongly criticized. Second, there are further concerns that NewJeans may be implicated in "tampering"—the illegal act of enticing an artist away before their exclusive contract ends. Currently, it is suspected that internal personnel of the agency actively conspired with a third party during the contract period to induce contract termination.

If these allegations are proven true, it would constitute a new and highly developed form of tampering. Tampering is a fatal act that destroys trust in the entertainment industry at its core. This is not merely a case of breaching a contract; it is an act of betrayal against the long-standing cooperative relationship that the agency and the artist have built together. If a globally renowned K-pop artist like NewJeans is involved in tampering, it would leave an indelible scar on our entire pop culture industry. Third, the unilateral termination declaration by NewJeans—an up-and-coming group who achieved rapid success in their third year—could set a perilously dangerous precedent that threatens the sustainability of Korea’s pop culture and entertainment industry.

Agencies bear the risk of discovering and nurturing artists, investing immense time and capital. The fostering of an artist is more than a mere business relationship; it is a product of mutual trust and dedication. Yet the fact that NewJeans, who skyrocketed to global fame right from their debut, announced termination before even half of their contract period had elapsed—along with the associated tampering allegations—undermines the relationship between agencies and artists, severely diminishes trust across the industry, and significantly deters investment.

If such arbitrary contract terminations were tolerated, who would dare invest in the Korean K-pop market in the future? The Korea Entertainment Producers Association urgently requests that NewJeans immediately withdraw this unfounded and irresponsible claim, return to their original intentions, and continue their activities in a normal manner.

Furthermore, if they have been attempting independent entertainment activities domestically or abroad, we strongly urge them to cease such attempts immediately and adopt a forward-looking attitude, including open dialogue with their agency. We also call for a thorough investigation into any illegal acts such as tampering.

Finally, we earnestly appeal to the National Assembly and government officials:

While the pop culture and entertainment industry may begin with corporate capital, the creation and ongoing activities of a star are supported by the hard work and sacrifices of countless workers within that enterprise. Therefore, disputes over exclusive contracts and issues of tampering are not only matters of corporate survival, but are also intimately tied to the livelihoods of numerous industry workers. We implore you once again to establish robust supplementary measures to prevent further occurrences of unilateral contract terminations by artists.

Thank you.

source: https://m.entertain.naver.com/now/article/477/0000524684