In a case in which agency ADOR filed a penalty and damages lawsuit against New Genius member Daniel after notifying him of the termination of his agency contract, the legal issues include the calculation of the penalty, the court's authority to reduce it, and the possibility of excluding bankruptcy and personal rehabilitation exemptions for willful violations. Industry estimates have suggested that penalty fines could reach 100 billion won per person, but courts can reduce them if they are deemed excessive.

"If the breach of the exclusive contract is not negligent, the creditor who claims damages can seize a portion of the debtor's monthly salary, excluding lifetime living expenses," Jang Jang-soo, a lawyer at Hanbyul Law Firm, told YTN. This suggests that losing a lawsuit could lead to long-term wage garnishment, property penalties, and a reduced likelihood of discharge in bankruptcy proceedings. Given that Adore has stated that it intends to hold Daniel's family and former CEO accountable, future legal battles and judgments will likely determine the outcome of the case.