Five Korean music industry organisations put out a statement this week urging the country’s government to avoid over regulating the K-pop industry. Although they would like one bit of new regulation, to stop what they call “tampering practices”, where labels and agencies approach artists already locked into contracts with rival companies.
With the high profile bust up between Ador and NewJeans putting K-pop deals very much in the spotlight, the five trade groups want law-makers to focus their attention on anti-tampering measures, rather than any new laws that regulate how agencies work with artists while they are under contract.
“Tampering can instantly destroy an agency that has taken on significant financial risks and invested heavily over a long period in an artist’s potential and success”, reads the statement endorsed by the Korea Management Federation, the Korea Entertainment Producer’s Association, the Record Label Industry Association Of Korea, the Recording Industry Association Of Korea and the Korea Music Content Association.
“Even if tampering is exposed”, the statement continues, according to The Korean Times, “holding perpetrators accountable remains challenging in the absence of specific legal measures”. If these practices go unchallenged, and tampering becomes the norm, “Korea’s entertainment management industry will collapse”.
The Korea Management Federation has already publicly criticised NewJeans, last December, after the group announced they were unilaterally cancelling their contract with HYBE subsidiary Ador.
It expressed concern that if NewJeans were able to walk away from their contractual commitments to their label – or ‘agency’ to use the K-pop vernacular – it could set a dangerous precedent that would result in other agencies being unable to profit from past investments in new talent.
Ador insists NewJeans are not legally entitled to cancel their deal with the agency, despite the group having raised various grievances about the behaviour of Ador and its parent company. To that end Ador is still trying to enforce its contract with NewJeans, while they pursue new projects without the agency’s involvement using the alternative name NJZ.
The fall out between NewJeans and Ador is an extension of the dispute between HYBE and Ador founder Min Hee-jin, who was pushed out of the CEO role at Ador last year. Both NewJeans and Min are now fighting legal battles with HYBE that are due in court in the next couple of months.
But, the trade groups say, both the group and the former CEO are mainly pursuing their disputes with HYBE through the court of public opinion, and they fear the impact that is having on their industry, especially as politicians take an interest.
“For the past ten months, we have seen a growing trend where certain parties attempt to resolve private disputes through media campaigns and unilateral public statements instead of proper negotiations or legal procedures”, they say, according to The Korea Herald. They then specifically cite Min’s press conferences, the appearance of NewJeans member Hanni before a committee in Korea’s National Assembly, and NewJeans’ ongoing communications and activities since splitting off from Ador.
With fans, media and politicians following the Ador v NewJeans dispute so closely, proposals have been made for new laws that would regulate the relationship between agencies and artists. While the five trade groups say “we are not opposed to regulations”, they add that law-makers must be wary of over-regulating, and instead encourage self-regulation within the industry where possible.
“Issues such as contract settlements between companies and artists, or labour conditions for minors, have vastly different characteristics and should be discussed individually within the industry”, they say, adding “guidelines for self-regulation and consensus should be established before external intervention”.
However, when it comes to new rules to stop tampering, that’s where law-makers definitely have a role, the trade groups believe. After urging “certain agencies and artists to stop manipulating public opinion for their own benefit”, they state, “we also earnestly request the National Assembly and the government to implement policy support to eradicate tampering”.
While the trade groups get busy lobbying, the very public war of words between HYBE and NewJeans – or NJZ if you prefer – continues. Communications for NewJeans are now mainly being handled by the parents of the group’s members, who this week accused HYBE – and its founder Bang Si-hyuk – of trying to get a NJZ performance at the ComplexCon event in Hong Kong next month cancelled.
The parents are “deeply upset and angry” about those alleged interventions, they say in a statement, adding “HYBE still sees the members purely as a means to make money, showing no support for their success and instead trying to obstruct and undermine them”.
For its part, Ador denies trying to get the performance cancelled, but admits it has approached ComplexCon organisers, urging them to officially involve the agency in the show, and to ensure the group perform as NewJeans not NJZ.
The NewJeans parents have also commented on the big statement from the five trade groups, denying that the NewJeans v Ador dispute will set any precedents that impact on the wider K-pop sector.
“This is a dispute between specific artists and their agency, not an issue affecting the entire K-pop industry”, they say, adding that the “courageous decision” of NewJeans to take on Ador “will help create a healthier, more diverse and creative industry”.