NewJeans' Danielle Faces Potential Financial Fallout Amid Contract Termination with ADOR

《Lee Min-kyung's Siren》
Lee Min-kyung from TenAsia sounds the alarm on the rapidly evolving entertainment industry, highlighting unseen issues and alerting to threats and changes surrounding the entertainment world.

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Danielle, a member of the group NewJeans, has been notified of her contract termination by her agency, ADOR, which could lead to financial liabilities amounting to hundreds of millions of dollars. ADOR has announced plans to file a 'penalty and damages lawsuit' against Danielle, and if this debt is recognized, it could become a 'non-dischargeable debt' that cannot be forgiven through personal rehabilitation or bankruptcy.

On the 29th, ADOR officially announced the termination of Danielle's contract. According to industry sources, ADOR demanded rectification for Danielle's breach of contract, but as it was not corrected within the given period, the contract was terminated. The breach includes entering into conflicting contracts, independent entertainment activities, and actions damaging to ADOR or NewJeans' reputation. The specific breach by Danielle has not been disclosed.

ADOR plans to file the lawsuit for penalty and damages against Danielle and also initiate legal proceedings against a family member, known to be Danielle's mother, and Min Hee-jin, the former CEO of ADOR.

Alongside the announcement of Danielle's contract termination, ADOR also announced Hanni's return to the agency. ADOR emphasized that "misunderstandings have accumulated over a long period." In their official statement, they mentioned, "The members have been exposed to distorted and biased information for a long time, leading to misunderstandings about the company and resulting in disputes," and stressed the need for a process to resolve these misunderstandings.

Legal experts suggest that ADOR's announcement implies that Danielle 'intentionally' violated the contract terms. If recognized as a deliberate illegal act, the debt becomes a 'non-dischargeable claim,' meaning it cannot be reduced even through rehabilitation or bankruptcy. Noh Jong-eon, a representative lawyer at Law Firm Jonjae, explained, "If Danielle's actions are recognized as a 'deliberate (civil) illegal act,' the situation escalates, as the resulting liability for damages cannot be discharged."

Jang Sung-soo, a lawyer at Law Firm Hanbyeol, also noted, "If the breach of contract was not due to negligence (mistake), the creditor who claims damages can garnish a portion of the debtor's salary, excluding living expenses, for life."

For salaried employees, from February next year, up to 2.5 million won of monthly income is protected from garnishment to ensure minimum living expenses. However, entertainers classified as business income earners do not automatically receive this protection, meaning their entire settlement income could be garnished unless they apply for a 'change in the scope of non-garnishable claims' for livelihood maintenance.

There is also speculation that it may be difficult to hold Danielle's mother or other surrounding individuals accountable. Lawyer Jang stated, "Unless Min's breach of duty is recognized in court, it is practically difficult to sanction Danielle's mother," adding, "Since Danielle is an adult, the court may determine that she is responsible for her decisions, even if there was persuasion from those around her."

For Min, the former CEO, the confirmation of breach of duty would strengthen ADOR's claim for damages. If the judiciary recognizes the breach, ADOR is likely to file a separate claim for damages against Min based on the amount claimed from Danielle.

Lee Min-kyung, TenAsia Reporter 2min_ror@tenasia.co.kr