The K-pop industry is facing a serious crisis as contract tampering allegations and legal battles continue to mount. Recent high-profile disputes are exposing cracks in the management system that supports South Korea’s billion-dollar idol business. One major case involves EXO-CBX, a subunit of popular boy band EXO. In mid-2023, members Chen, Baekhyun, and Xiumin notified their agency they would terminate their long-term contracts. They cited unfair extensions and a lack of payment transparency.
Just months later, Baekhyun launched his own label, INB100. By May 2024, that label had become a subsidiary of One Hundred, a company linked to singer MC Mong and Cha Ga-won, chairman of p_Arc Group.This connection led many to allege that MC Mong and Cha orchestrated the EXO-CBX split. The agency accused them of targeting active artists still under valid contracts. It claimed the trio’s sudden legal actions were triggered by external influence. While the agency allowed CBX to pursue solo work, it argued that the situation revealed undeniable contract tampering.
EXO-CBX, however, remains under contract for EXO’s group activities.The group plans to make a comeback later this year. Another ongoing case involves NewJeans, one of K-pop’s fastest-rising girl groups. In late 2024, the group’s legal team issued a contract termination notice to their agency. They claimed internal changes and broken trust made their contracts invalid.
Ador, the agency, rejected the claim and sued to block the group from independent promotions. The court partially sided with Ador, restricting NewJeans from certain activities. Two rounds of mediation failed.The court will issue a final ruling on October 30.The group argues that the removal of Ador’s former CEO, Min Hee-jin, shattered the relationship that underpinned the agreement.The agency insists it fulfilled all contract terms and argues there are no grounds for termination.
Industry leaders warn that these cases threaten the core of the K-pop business. “If contracts lose meaning, no one will invest in idols,” said one executive. Producing a single idol group can cost up to 10 billion won, often before debut. If artists leave before generating returns, agencies face massive losses. This financial risk makes contract tampering a serious issue, often likened to intellectual property theft. Music industry associations argue that both parties must respect legal contracts. They emphasize that only courts, not individuals, should decide if an agreement has been broken.
Observers say the recent cases may lead to regulatory reforms. Companies may begin tightening contract terms or lobbying for industry-wide guidelines. As legal rulings approach, the stakes are high for both idols and their agencies. The outcome will likely shape how agencies write and enforce future idol contracts.For now, the K-pop industry watches closely as the debate over contract tampering continues to unfold.
