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NewJeans vs ADOR: Former clarifies 1 billion KRW penalty for independent activities would be 'void' if they win injunction case
NewJeans' side commented on the nature of the latest court ruling and whether or not it predetermined the outcome of the injunction appeal. Know more.
NewJeans has been embroiled in a legal dispute with their label for quite some time now. On May 30, another court hearing for ADOR's injunction to halt the quintet's independent entertainment activities took place. The ruling went against NewJeans as they were asked to pay a subsequent penalty amount on each violation of the court's verdict. After the news spread online, the girl group clarified the nature of the fine, as per K-media outlet Daily Sports.
NewJeans slapped with 1 billion KRW penalty
The Seoul Central District Court's 52nd Civil Division upheld its previous verdict that NewJeans can't engage in independent entertainment activities or work with third-party agencies without ADOR's approval. If they violate this ruling, each member will face a 1 billion KRW (approximately 730,000 USD) fine per instance, potentially totaling 5 billion KRW (around 3.6 million USD) if all members participate in a single unapproved activity.
This restriction, however, will remain in place until the court decides on the validity of their exclusive contract with ADOR.
NewJeans' comment on 1 billion KRW penalty
According to NewJeans' legal representative, the court's decision to restrict the girl group's activities is "temporary" and will only be in effect until a final decision on the injunction case is made. If NewJeans wins the appeal, the restrictions will be lifted, and the enforcement order will be canceled, essentially nullifying the current ruling.
"If the NewJeans members win the appeal, both the injunction and the enforcement order will be void," NewJeans' side said.
NewJeans' instances of violations before the latest ruling
The Seoul court noted that NewJeans had already breached the injunction by reportedly preparing for overseas concerts and releasing new music under their new and unauthorized moniker, NJZ. This was mentioned as an example of non-compliance with the latest ruling, and similar instances in the future will influence the court's decision to impose the 1 billion KRW penalty.
Future of NewJeans' appeal against injunction
As per the quintet's legal counsel, the May 30 verdict of "indirect enforcement" was based on a previous injunction from March 21. They explained that the new ruling was a "separate matter from the ongoing appeal against that injunction," which was "still under review" by the court. Hence, it can be said that the latest court decision will not predetermine the outcome of the injunction appeal.
