12/9/2024

K-pop’s “7-Year Curse” Becomes the “3-Year Danger Zone”: Rookie Girl Groups Announce Contract Terminations

Contract disputes surrounding girl groups are entering a new phase.

The previously dubbed “7-year curse”—the typical contract expiration point—has moved to the early stages of debut, presenting unprecedented challenges for the K-pop industry.

A New Crisis: Early-Stage Contract Disputes

NewJeans, a group representing the forefront of Hallyu, announced their contract termination with ADOR just two years after debuting.

The members cited contractual violations and unfair treatment by ADOR, declaring they would terminate their contracts without lawsuits or penalties.

Additionally, the group’s intent to continue with Min Hee-jin while retaining rights to their group name has intensified the controversy.

The Complexity of the VCHA Case

JYP’s U.S.-localized girl group VCHA also faced turmoil as member KG announced her departure and contract termination due to mistreatment and abuse by staff.

Issues cited included restrictions on personal life, excessive work demands, and unfair treatment.

Reports of another member’s suicide attempt have further spotlighted flaws in the management system for rookie groups.

Rookie Girl Groups Announce Contract Terminations

Agencies’ Strategic Responses

ADOR quickly countered with a legal suit to validate the contract’s legitimacy.

Related entertainment industry groups expressed concerns, stating such incidents “shake the foundations of K-pop.”
JYP revealed detailed negotiation processes with KG’s side and vowed a firm response to the allegations.

They also highlighted concerns about the remaining members’ well-being, considering legal action as part of their next steps.

Structural Challenges in the K-pop Industry

The process of debuting a girl group involves astronomical costs and time.

With training, production, and marketing expenses combined, launching a group requires tens of billions of won.

Contract terminations before the recovery of these investments pose a risk to the sustainability of the industry.

Balancing Artist Rights and Obligations

Recent disputes reflect the growing awareness of artists’ rights.

Unlike the past, rookies are now speaking out against unfair treatment.

However, concerns are growing within the industry over a trend where rights are emphasized while obligations are overlooked.

Finding the appropriate balance between rights and responsibilities has become a pressing issue.

New Challenges in the Global Market

Contract disputes involving groups targeting global markets add further complexities.

Differences in legal systems, cultural norms, and labor environments create additional challenges.

The VCHA case exemplifies the difficulties arising from K-pop’s global expansion and localization efforts.

The Need for a New Paradigm in K-pop

These incidents signify that the K-pop industry stands at a critical turning point.

Beyond simple contract disputes, systemic improvements are urgently needed to ensure sustainable growth.

Balancing rookie groups’ rights protection with the agencies’ need for stable investment environments is paramount.

This situation has sparked calls for a new paradigm in K-pop to promote healthy growth.

Establishing transparent contract relationships, creating fair working environments, and protecting artists’ rights are among the key improvements required.

The current crises serve as a reminder that the K-pop industry must evolve structurally to address these emerging challenges.

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