NewJeans Faces Legal Halt with Financial Penalties: Why 5 Billion KRW per Group Activity?

On May 29, the Seoul Central District Court’s Civil Division 52 (Chief Judge Heo Kyung-moo) accepted the indirect injunction request filed by ADOR against NewJeans.

The core of the ruling is that until the first-instance judgment in the main lawsuit regarding the validity of the exclusive contract, NewJeans members must not engage in entertainment activities without ADOR’s prior approval.

This indirect injunction is not a mere warning, it’s a binding measure that imposes actual financial penalties for violations.

The court specified, “If a NewJeans member engages in independent activities, each member must pay ADOR 1 billion KRW per violation.” If all five members participate together, the damages could reach up to 5 billion KRW.

This amount appears to have been determined based on NewJeans‘ investment costs, revenue, operating profits, and settlement amounts.

The court also noted an event on March 23, when NewJeans members performed under the new group name “NJZ” at ComplexCon in Hong Kong, where they debuted their new song “Pit Stop.” The court deemed this a violation of the preliminary injunction that mandates compliance with the exclusive contract.

The main lawsuit filed by ADOR to confirm the validity of the exclusive contract is still ongoing. While this ruling is a temporary measure pending the final judgment, it is noteworthy that the court has recognized the contract’s validity for now and imposed enforcement measures.

As the main lawsuit progresses, the court’s temporary recognition of the contract’s validity and its enforcement measures signal a critical moment for NewJeans‘ future activities.