After ‘NewJeans expulsion’ notice, how big could Danielle’s legal penalty be?

Danielle / Xportsnews

K-pop fans were left stunned after Ador — the label behind girl group NewJeans — notified member Danielle that she is being removed from the group, while signaling its plans to pursue legal action over alleged contract violations.

Lawyers in Korea say the financial penalties tied to the dispute could exceed 100 billion won ($74 million) under industry-standard formulas.

Ador said on Monday that it had "determined it is difficult to continue with Danielle as a NewJeans member and Ador artist," adding that it had notified her of contract termination. The company also said it intends to "hold legally accountable" a member of Danielle’s family and former Ador CEO Min Hee-jin, whom it claims played a role in triggering the dispute and delaying the group’s return.

Although Ador did not disclose a specific penalty figure, Korean legal commentators say the potential sum could be enormous.

According to attorney Ahn Hee-chul of law firm DLG, who recently discussed the case on a YouTube show, damages in standard Korean entertainment contracts are typically calculated by multiplying an artist’s average monthly revenue over the previous two years by the remaining length of the contract.

Ador recorded major revenue growth in 2023 and 2024, and Danielle’s exclusive contract reportedly runs through July 2029, leaving four years and six months remaining. Based on those figures, Ahn said the penalty attributable to a single member could reach the level of more than 100 billion won.

NewJeans / Xportsnews

Ahn said that such "penalty for breach" claims can be pursued separately from ordinary damages, although courts may reduce the amount if it is judged excessively high. Even then, some experts note that if a breach is ruled intentional, related debts may not be discharged through personal rehabilitation or bankruptcy proceedings, meaning a portion of an individual’s income could remain subject to long-term collection.

Attorney Jang Sung-su of law firm Hanbyol said in an interview with Korean broadcaster YTN that when a breach is not the result of negligence, "a creditor who files a damages claim may be able to garnish part of a debtor’s wages for life, excluding basic living expenses."

The dispute is unfolding amid an emotionally charged period for NewJeans, one of K-pop’s most globally recognized fourth-generation groups. Ador said members Haerin and Hyein returned to the label on Dec. 12, while Hanni confirmed her return on Monday. Member Minji is still in discussions with the agency.

The situation has generated intense debate among fans online, reflecting wider concerns about artist contracts, agency control and the financial risks idols face when legal conflicts erupt.

This article from Xportsnews is adapted by a generative AI system and edited by The Korea Times.