NewJeans Faces ₩1 Billion Penalty Per Unauthorized Activity Amid Contract Dispute

The legal tension between K-pop girl group NewJeans and their agency, Ador, just took a serious turn. A Seoul court recently issued a decision that could cost each group member a hefty sum: ₩1 billion (roughly $725,000) for every entertainment activity done without the agency's approval.

This ruling stems from a case where Ador, a subsidiary of entertainment giant Hybe, requested what’s known as indirect compulsory execution. Simply put, it's a legal method used to force someone to follow a court order by slapping them with financial penalties if they don't.

The court explained that NewJeans performed under a different name and even dropped new music despite a previous injunction telling them not to. To make sure the group sticks to the rules moving forward, the court has now authorized this steep fine for any future violations.

However, there's a small relief for the members. The decision won’t be applied to any activities they’ve already done without permission since they declared their contracts invalid late last year. So, they're not being asked to pay for past actions, only those that may happen from now on.

Until the main lawsuit settles the question of whether NewJeans’ exclusive contracts with Ador are still valid, the court says the members aren’t allowed to accept any showbiz offers or work outside of Ador’s supervision.

This isn’t the first legal win for Ador. Back in March, the same court had already sided with the agency, stopping NewJeans from signing individual deals or endorsements without the company’s go-ahead.

The group originally announced in November that they were ending their contracts, accusing the agency of breaking their trust. The court will revisit the case on June 5 during the second hearing to determine if their contracts are still legally binding or not.

While fans eagerly await clarity, it’s clear the battle between NewJeans and Ador is far from over.