The girls of Jeanz, formerly operating under NewJeans, are facing more pressure from Korean organizations amidst their pursuit to terminate their contract with the label HYBE.
The Korea Startup Forum (Kospo), a start-up coalition founded in September 2016 by approximately 50 startups, reprimanded Jeanz for "a decline in social trust regarding investment contract performance seriously dampens investment sentiment and has a fatal impact on the entire ecosystem," in a report by Allkpop.
As a result of their contract termination in limbo, the associations claim there's been "reduced investors' willingness to invest and could damage the entire Korean startup ecosystem, far beyond individual contracts. If overseas investors lose trust in the Korean market, global investment attraction will decrease, limiting growth opportunities for domestic startups and weakening the competitiveness of the Korean startup ecosystem."
Read more: 'Jeanz's Hanni Might Have To Return To Australia Amid Visa Challenges Tied To Agency ADOR
The association urged the girls to reconcile with their company and express a "deep concern that the sound development of the startup industry and the investment environment could be seriously dampened."
In recent weeks, Jeans has faced pressure from Korean associations, including the Korea Music Content Association (KMCA), Korean Entertainment Producers Association (KEPA), and advertisers over their dispute against HYBE.
KMCA accused former ADOR CEO and NewJeans ally Min Hee Jin of poaching artists, threatening NewJeans' removal from music charts, including the Circle Chart.
"These actions undermine the integrity of Korea's music industry, and we commit to taking all necessary measures to eradicate them," they said in a statement.
Similarly, KEPA claimed that the group's move against their label "could set a very dangerous precedent."
"NewJeans' desire to take risks less than half the contract, its related tampering allegations as well as breaking its agency-artist relationship is greatly reducing the industry's credibility and investment, as a whole," they said.
The group was also dropped from their advertising contracts with financial firm Shinhan Financial Group, which decided to terminate the group's model contract and shut down any chances of renewal.
Jeanz, which ceased use of the HYBE-owned "NewJeans" label, is currently promoting under their new name and individual names.
The group announced that they were unilaterally ending their exclusive contracts with agency HYBE on November 28 along with plans to continue working with former ADOR CEO Min Hee Jin, who resigned from her position as internal director of the company, a position she'd only been reinstated in three days earlier, on November 20.
HYBE subsidiary ADOR has filed a lawsuit to confirm the validity of the exclusive contract, claiming the agreement remains in effect until July 2029.
