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NewJeans gets slapped with 1 billion KRW penalty for each independent activity without ADOR approval
NewJeans is to face a 1 billion KRW penalty for each entertainment activity undertaken independently or through a third party without the label's consent. Know more.
On May 30, NewJeans and ADOR clashed in court once again over NewJeans' appeal against ADOR's injunction seeking to prohibit the group's independent entertainment activities. Unfortunately for NewJeans, the court ruled in ADOR's favor yet again. According to the latest report by K-media outlet MK Sports, the ruling partially accepted ADOR's injunction request and imposed a hefty fine on the girl group members for each instance of non-compliance.
NewJeans faces 1 billion KRW penalty
NewJeans is at a disadvantage once again, as the 52nd Civil Division of the Seoul Central District Court ordered NewJeans to pay a 1 billion KRW (approximately 726,000 USD) penalty for each independent activity without their label ADOR's approval. As per the latest ruling, the quintet will also not be allowed to participate in entertainment activities through third parties without the agency's knowledge.
The arrangement shall persist until the verdict declaration for the ADOR vs. NewJeans' main (exclusive contract validity) lawsuit.
NewJeans and ADOR are identified as the obligor and obligee
“The debtor, NewJeans, shall not engage in independent entertainment activities or through third parties without the prior approval or consent of the creditor, ADOR, until the first-instance judgment in the lawsuit confirming the validity of the exclusive contract is announced,” the court stated. In addition to facing a 1 billion KRW penalty for each violation, NewJeans was also ordered to bear the cost of the injunction application.
Following the court's ruling in the HYBE subsidiary's favour, the label gained a significant legal advantage in its dispute with NewJeans over the validity of their exclusive contract.
Previous verdict influencing the latest ruling
This latest ruling followed the court's previous decisions, which granted ADOR's injunction application on March 21, effectively blocking NewJeans from signing advertisement contracts or pursuing other independent engagements without ADOR's approval. When NewJeans appealed on April 21, the court upheld its earlier verdict, and now the recent decision further reinforced ADOR's position.
The dispute between NewJeans and ADOR is far from over, with tensions expected to intensify as the main lawsuit progresses. A second hearing is set for June 5, which may shed more light on the ongoing conflict.
