NewJeans’ Danielle faces massive $81 million penalty after contract termination

The drama surrounding NewJeans just took a legal turn. ADOR, the agency behind the K-pop sensation, has terminated Danielle’s exclusive contract and filed a lawsuit seeking a penalty for breach of contract and compensation for damages—with estimates suggesting the sum could exceed 100 billion Korean won.

On December 29, ADOR announced, “We have determined that Danielle cannot continue as a member of NewJeans or as an ADOR artist, and we have notified her today of the termination of her exclusive contract.”

While the agency declined to share all details citing ongoing legal proceedings, it cited violations of the exclusive contract, including conflicting agreements, unauthorised entertainment activities, and actions that allegedly damaged the reputation of ADOR and NewJeans. ADOR said requests for correction were ignored, leaving termination as the only option.

Legal experts, quoted by The Chosun Daily, estimate Danielle could owe approximately 108 billion Korean won. According to lawyer Ahn Hee-cheol (DLG Law Firm), the standard penalty formula multiplies ADOR’s average monthly sales over the two years prior to contract termination by the remaining months of the contract.

Ahn notes that penalties are separate from damages claims, and courts may reduce amounts if deemed excessive.

If Danielle loses, the debt could become non-dischargeable, meaning it cannot be eliminated through personal rehabilitation or bankruptcy. Lawyer Jang Seong-su explained to YTN, as quoted by the Chosun Daily, “If the breach was intentional, a creditor can garnish a portion of the debtor’s salary for life, excluding living expenses.”

The agency is also signaling potential legal action against Danielle’s family and former CEO Min Hee-jin, claiming “significant responsibility in causing this dispute, the departure of NewJeans members, and delays in their return.” ADOR added that it will determine the timing and method of addressing these controversies at a later date.