News & Insights
Latest news and legal insights from HANBYOL LAW LLC.
'Newzine Exit' Daniel Wiegand's 100 Billion...a year's worth of revenue for a medium-sized company
As Adobe has filed a claim for penalties and damages along with the termination of the exclusive contract with Newzine Daniel, the penalty is estimated to be around 100 billion won according to the Fair Trade Commission's standard exclusive contract formula (average monthly sales in the last two years × remaining contract period). Although Adobe did not disclose the exact amount, it is expected to be large based on last year's sales and the remaining contract period.
The legal issue is how the penalty is calculated and whether the debt can be discharged. The problem is that if the contract is intentionally breached, the damages may become a non-dischargeable debt that cannot be discharged even in a personal rehabilitation or bankruptcy.
"If the breach of the exclusive contract is not negligent, the claimant can garnish a portion of the debtor's salary, excluding living expenses, for the rest of his life," Jang Jang-soo, a lawyer at Hanbyul Law Firm, told YTN, warning that if Daniel's side loses, long-term financial pressure could become a reality.

