NewJeans slapped with 1B KRW penalty for unauthorized activities
What's the story
In a major setback for K-pop group NewJeans, the Seoul Central District Court has ordered them to pay a fine of 1 billion KRW (around $7,26,000) for each instance of independently carrying out activities without prior approval from their agency, ADOR.
The ruling was announced on Friday and prohibits the members from engaging in entertainment work via third parties without ADOR's approval pending a final verdict is reached in their ongoing legal dispute.
Legal implications
Court's ruling further complicates NewJeans-ADOR legal battle
The court's ruling gives ADOR a significant advantage in its ongoing legal battle with NewJeans regarding the validity of their exclusive contract.
The five-member group was also ordered to cover the cost of the injunction application.
The court stated, "The debtor, NewJeans, shall not engage in independent entertainment activities or through third parties without the prior approval or consent of the creditor, ADOR."
Appeal outcome
NewJeans's appeal against ADOR's injunction request denied
The latest ruling comes after NewJeans had appealed in opposition to ADOR's injunction seeking to prohibit their independent entertainment activities.
However, the court ruled in favor of ADOR, partially accepting its request and handing down a hefty fine on the group members involved in each case of non-compliance.
The arrangement will remain in place until the verdict declaration for the key lawsuit regarding the validity of their exclusive contract with ADOR.
Ongoing conflict
Tensions likely to escalate in NewJeans-ADOR dispute
The conflict between NewJeans and ADOR is far from over, as tensions are expected to escalate as the main lawsuit progresses.
A second hearing is set for June 5, which may provide more clarity on the ongoing conflict.
The court's ruling on March 21 had previously blocked NewJeans from signing advertisement contracts or pursuing other independent engagements without ADOR's approval.