NewJeans Faces 1 Billion KRW Fine Per Unauthorized Activity; Group Calls Court Ruling Temporary

NewJeans Faces 1 Billion KRW Fine Per Unauthorized Activity; Group Calls Court Ruling Temporary

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The Seoul Central District Court has ordered each member of NewJeans to pay 1 billion KRW (about $730,000) to their agency ADOR for every unauthorized entertainment activity. The ruling comes amid an ongoing legal battle over the group’s exclusive contracts. NewJeans responded by calling the decision “temporary” and expressed confidence in their appeal.

The court found that NewJeans violated a previous injunction by performing overseas and releasing music under the name NJZ without ADOR’s approval. If all five members participate in an unapproved activity, the total penalty could reach 5 billion KRW ($3.65 million). The group insists the fine will be void if they win their appeal.

Court Rules Against NewJeans in Latest Legal Battle

On May 30, the Seoul Central District Court sided with ADOR, enforcing strict penalties on NewJeans for independent activities. The court stated that the group must pay 1 billion KRW per violation if they engage in entertainment work without ADOR’s consent. This decision follows an earlier injunction from March 21 that banned the members from solo or group activities outside their contract.

The court noted that NewJeans had already breached the injunction by performing at ComplexCon Hong Kong under the name NJZ and releasing a new song, “Pit Stop.” The judges also warned of possible future violations, leading to the heavy financial penalty.

“Since NewJeans violated the obligations set by the injunction by performing under a new group name and even releasing new songs before and after the injunction ruling, it is necessary to impose indirect compulsory enforcement to ensure compliance with the order.”

NewJeans Calls the Ruling Temporary

NewJeans quickly responded to the court’s decision, clarifying that the penalty is not final. Their legal team explained that the enforcement order is tied to the March injunction and not their ongoing appeal. They emphasized that winning the appeal would cancel both the original injunction and the fines.

“The indirect compulsory decision announced today was made in response to an application submitted by ADOR on April 4. It is not directly tied to the appeal of the original injunction, which is still under separate legal review.”

The group’s statement also highlighted that such enforcement measures often accompany injunctions but do not determine the final outcome. Fans and critics had mixed reactions to NewJeans’ confidence in their appeal.

“They must be confident theyโ€™re going to win.”
“I also want to live in this level of delusion.”
“Isnโ€™t this something everyone already knows? I guess theyโ€™re confident about winning the appeal.”

Background of the Legal Dispute

The conflict between NewJeans and ADOR began in November 2024 when the group attempted to terminate their contracts, claiming a loss of trust. ADOR disputed this, arguing that the members could not unilaterally end their agreements. The agency then filed for an injunction to block independent activities, which the court granted in March.

ADOR also sued to confirm the validity of the contracts, with the first hearing held last month. NewJeans’ legal team showed no interest in settling, while ADOR remained open to negotiations. The next hearing is scheduled for June 5, which could be a turning point in the case.

What Happens Next?

The court’s latest ruling will remain in effect until the appeal is resolved. If NewJeans wins, the penalties will be canceled. However, if ADOR prevails, the group could face severe financial consequences for any unauthorized work.

The June 5 hearing will address the core dispute over the contract’s validity. A final decision could take months, but the outcome will determine whether NewJeans can continue as an independent act or remain under ADOR’s management.

Credits: The Korea Herald, Korea JoongAng Daily


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