Reason behind NewJeans’ ₩1B penalty per violation revealed amidst ongoing contract dispute with ADOR

On May 30, 2025, a Seoul court officially barred the members of NewJeans from participating in any future entertainment activities without written consent from their agency, ADOR. The directive was issued by the 52nd Civil Panel of the Seoul Central District Court.

This prohibition will remain in effect until the court rules on whether their exclusive deal with ADOR still stands. If the members violate the order, they will be required to pay a penalty of KRW 1 billion (roughly USD 735,000) per breach.

The fine kicks in as soon as the members receive the court’s final notice. ADOR originally asked for double the fine, but the court set it at half. The restriction came after the members tried to work independently under the name "NJZ," although a legal block had already been in place.

ADOR then asked the court for stricter steps to prevent more violations. The court agreed, stating the penalty was meant to make the five members follow the original order.

As a result, the members can’t take up new shows, release songs, or sign endorsement deals without ADOR’s go-ahead. If the group violates this stipulation, they will face a fresh fine each time.

According to a legal expert on June 8, this is one of the biggest penalties ever in a K-pop contract case. They stated that it's a "strong decision to increase the effectiveness of the injunction."

"Since it appears likely that the debtors will violate their obligations in the future, it is necessary to order indirect enforcement to enforce performance of the obligations stipulated in the injunction order," the legal community asserted (via K-media Insight).

For context, during JYJ’s 2011 legal battle with SM Entertainment, the fine was just KRW 20 million (about USD 14,800) per breach.

The court also made it clear that NJZ must pay the legal fees tied to this case. The ultimate decision regarding the group’s sole agreement with ADOR remains unresolved. Till then, all eyes are on how this high-stakes fight shapes future idol-agency deals.

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NewJeans and ADOR appeared in court for the second session over a contract clash

As reported by Star News, K-pop group NewJeans and their label ADOR resumed their legal battle on June 5, 2025, at the Seoul Central District Court.

The hearing marked the second round in an ongoing dispute, with ADOR seeking confirmation on the legitimacy of its exclusive contract with the five-member group.

Presided over by the court’s 41st Civil Agreement Division, the session saw NewJeans’ legal team restating their stance without adding new materials. They argued that the professional ties with ADOR could no longer be mended, largely due to the departure of former CEO Min Hee-jin.

They also cited a past collaboration with producer Hitchhiker, claiming the agency did not explain the discussions held or the outcome of the partnership.

ADOR responded by saying that NewJeans had been altering their reasoning for the contract withdrawal. The agency claimed this shift indicated that the group had already decided to exit and was now retroactively justifying that move.

They argued this did not align with the legal basis needed to dissolve a binding contract. At an earlier hearing in April, ADOR stated that Min Hee-jin stepped down of her own accord. The company added that NewJeans had managed to perform at ComplexCon independently, suggesting the group remained operational without her leadership.

In response, the group argued that the company had shifted notably following the change in management. They claimed the original vision and structure under which the contract was signed no longer existed. According to them, the foundation of trust had collapsed, making further cooperation impossible.

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The court has not yet delivered a verdict. A third hearing is anticipated on July 24, as both parties continue to present their arguments.