Shinhan Financial Group has decided not to renew its advertising contract with NewJeans, following a series of legal and contractual issues surrounding the girl group’s relationship with their agency, ADOR.
Contract Decision
On December 13, 2024, industry sources reported that Shinhan Financial had opted not to extend its advertising contract with NewJeans, who had been the face of the company’s integrated platform “Super SOL” since last year. A representative from Shinhan Financial confirmed that the contract would end in December, with advertisements already filmed continuing to air until March 2025.
Shinhan Financial originally hired NewJeans to enhance its brand appeal to the MZ Generation (Millennials and Gen Z). However, the growing tensions between NewJeans and their agency ADOR have led to complications in the brand’s continued use of the group as its spokesperson.
The Dispute with ADOR
The decision follows NewJeans‘ announcement in late November that they had unilaterally decided to terminate their exclusive contract with ADOR, prompting the agency to file a lawsuit with the Seoul Central District Court to confirm the validity of the contract. This legal conflict has created uncertainty for advertisers, including Shinhan Financial, about the proper party to deal with for contracts involving the group.
Despite the ongoing dispute, NewJeans continues to fulfill their commitments arranged by ADOR. However, their ability to fully participate in scheduled events and activities has been constrained. Reports have surfaced that at some events, the group could not refer to themselves as “NewJeans,” a sign of the complexities surrounding their contract issues.
Allegations and Legal Complications
The situation is further complicated by allegations that Min Hee Jin, the former CEO of ADOR, played a role in encouraging NewJeans to leave the agency. An exclusive report from Dispatch claimed that Min Hee Jin met with an individual identified as Chairman ‘A’ of Company ‘D’ in a private meeting, supposedly arranged through a relative of a NewJeans member. The report was followed by a lawsuit filed by Min Hee Jin against the reporters for alleged defamation.
For advertisers like Shinhan Financial, continuing relationships with NewJeans have become increasingly risky due to the legal complexities. If they choose to pursue separate advertising contracts with individual members, they could face legal consequences, such as violating ADOR’s exclusive rights over the group.
Exclusive Contract Regulations
Under the terms of NewJeans’ exclusive contract with ADOR, all activities conducted by the members, including solo projects or any work with third-party entities, require the agency’s prior approval. According to industry experts, engaging in direct advertising deals with NewJeans’ individual members could be classified as a breach of contract. The Ministry of Culture, Sports, and Tourism’s regulations regarding exclusive contracts state that all entertainment activities must be done through the artist’s agency, not third parties, without prior agency approval.
Outlook for New Contracts
Due to the ongoing legal battles and regulatory concerns, it is unlikely that other advertisers will sign new contracts with NewJeans in the immediate future. Legal risks and potential lawsuits make the prospect of engaging with the group an uncertain endeavor.
