Shinhan Financial Group has chosen not to renew its advertising model contract with NewJeans .

The decision comes after NewJeans' recent announcement to unilaterally terminate their exclusive contract with their agency, ADOR , which led to an escalating conflict between the two parties.

According to industry sources on December 13, Shinhan Financial Group has decided not to extend its advertising contract with NewJeans, which had been the official models of the group's integrated platform " SOL " since last year.

A Shinhan Financial representative said, " Our advertising contract for the 'Super SOL' brand with NewJeans will end in December, and it will not be extended ." However, he added, " Since model contracts have been established by product and subsidiary, advertisements with NewJeans that have already been filmed will continue to air until March ."

Shinhan Financial launched its super app 'Super SOL' last year, consolidating key features of its Shinhan Bank, Card, Securities, Life, and Savings Bank apps into a single platform.

To ensure brand consistency, its subsidiaries have collectively signed an advertising model contract with NewJeans. The contract periods for Shinhan Bank and Shinhan Card will end in December, while Shinhan Investment Securities will continue until March of next year.

With the main contract with NewJeans as the face of the 'Super SOL' brand ending, it is unlikely that any further product endorsements or subsidiaries will be renewed. The initial goal of hiring NewJeans was to establish a unified brand image for Super SOL across all Shinhan subsidiaries.

Shinhan Financial originally hired NewJeans as a model to boost its brand appeal among Millennials and Gen Z. However, as the conflict between NewJeans and their agency, ADOR, escalated, the company found itself in a difficult situation.

On November 29, NewJeans held a press conference to announce that they had unilaterally notified ADOR of their intention to terminate their exclusive contract. In response, ADOR filed a lawsuit with the Seoul Central District Court to uphold the contract's validity. This legal dispute has created confusion for advertisers about who they should pay for contracts involving NewJeans.

Despite the ongoing litigation, NewJeans continues to participate in ADOR-organized programs. However, there have already been signs of constraints on their activities. For example, at some events, they have reportedly been unable to refer to themselves as "NewJeans," reflecting the complexity of the ongoing contractual dispute.

Further complicating the situation are allegations that Min Hee Jin , ADOR's former CEO, was behind the group's attempt to leave the agency. Some reports suggest that Min Hee Jin encouraged NewJeans to part ways with ADOR.

In particular, an exclusive report from Dispatch claimed that Min Hee Jin met with President 'A' of Company 'D' at a Cheongdam-dong cafe, allegedly at the introductory remarks of a relative of a NewJeans member. Dispatch even captured a photo of the meeting, which reportedly lasted three hours. In response, Min Hee Jin's camp filed a lawsuit against the journalists who wrote the article, accusing them of defamation under the Information and Communications Network Act.

For advertisers like Shinhan Financial, extending contracts with NewJeans is considered risky. Entering into separate advertising agreements directly with individual members could potentially lead to legal disputes. Advertisers could be accused of violating ADOR's rights, as the exclusive contract prohibits members from engaging in solo activities or working with third-party entities.

According to industry experts, under current regulations on exclusive contracts, all activities of members—whether conducted by an external agency or a family business established by the members or their parents—are considered a breach of contract. This is in line with Articles 2, 6, and 14 of the Ministry of Culture, Sports, and Tourism's Standard Exclusive Contract for Artists.

These clauses stipulate that all entertainment activities must be conducted through the agency, and artists may not negotiate appearances or offer entertainment services through third parties without prior approval from the agency. This regulation applies not only to external agencies but also to family businesses established by members or their parents.

Given these complications, it is unlikely that other advertisers will seek new contracts with NewJeans anytime soon. Legal risks and potential lawsuits make such agreements a risky endeavor for advertisers.