According to a report from Business Post, NewJeans could face a substantial penalty of 210 billion Won if they decide to terminate their contract with HYBE and align with Min Hee-jin. The calculation is based on industry standards and contractual obligations.
NewJeans, having paid off initial investments and received salaries in just two months of their debut, has demonstrated remarkable financial performance. Industry estimates indicate that typical girl group investment costs range from 7 billion to 10 billion Won.
Since its debut, NewJeans has reportedly generated profits exceeding 7 billion Won, with anticipated growth in sales and activities expected to bolster revenue further in 2023.
Under the Fair Trade Commission’s standard exclusive contract guidelines, the penalty is determined by calculating the average monthly revenue for the preceding two years up to the contract termination date, multiplied by the remaining months in the contract. Business Post’s analysis projects the potential penalty for NewJeans to reach as high as 210 billion Won.
This situation with ADOR bears resemblance to the exclusive contract dispute involving “FIFTY FIFTY” a year ago, highlighting complexities in the Korean entertainment industry’s contractual industry.
