Two companies have sued Kim Soo Hyun for 3 billion KRW (about 2 million USD) to recover modeling fees and damages, citing a loss of trust. More brands may follow, as the actor’s reputation faces challenges amid a personal controversy.
Lawsuits Filed by Advertisers
Two unnamed companies that hired Kim Soo Hyun as their advertisement model have filed lawsuits against him. They are seeking repayment of the fees paid for his endorsement deals, along with additional compensation for damages. The combined value of these lawsuits is approximately 3 billion KRW, equivalent to 2 million USD. According to YTN, a third company is already considering terminating its contract with the actor, pointing to a loss of trust as the primary reason.
Kim Soo Hyun has endorsement contracts with 15 brands. Each contract is valued between 1 billion KRW (about 696,000 USD) and 1.2 billion KRW (about 835,000 USD). The high value of these deals reflects his status as one of South Korea’s top advertisement models, particularly after his success in dramas like My Love from the Star and Queen of Tears. However, the current lawsuits threaten his financial standing and reputation in the industry.
Industry Reactions and Legal Insights
Legal expert Park Sung Woo from Woori Law Firm explained the dynamics of such lawsuits. He noted that companies are often hesitant to be the first to sue a high-profile model like Kim Soo Hyun. However, once a lawsuit is filed, it creates a ripple effect, encouraging other brands to join. This trend could lead to additional legal actions against the actor, potentially increasing the financial burden on him and his agency, Gold Medalist.
Posts on X reflect similar sentiments, with users noting that more advertisers are expected to file lawsuits. One post mentioned that the initial lawsuits from the two companies amount to 3 billion KRW, but the total could climb as high as 20 billion KRW if all 15 brands demand compensation. Another user speculated that even Disney+, linked to Kim Soo Hyun’s upcoming drama Knock-Off, might consider legal action if the controversy impacts the project.
Background of the Controversy
The lawsuits stem from a personal controversy involving Kim Soo Hyun and the late actress Kim Sae Ron. Allegations surfaced that Kim Soo Hyun had a romantic relationship with Kim Sae Ron when she was a minor, sparking widespread backlash. These claims were amplified by Kim Sae Ron’s family and the Garosero Research Institute, a YouTube channel known for exposing celebrity scandals. The accusations led to significant public scrutiny, with brands like Prada, Dinto, and others cutting ties with the actor.
In response, Kim Soo Hyun held a press conference on March 31, 2025, denying the allegations. He stated that any relationship with Kim Sae Ron occurred only after she was an adult. He also claimed that leaked messages suggesting otherwise were doctored, submitting them for forensic analysis to prove their falsity. Despite his efforts, public opinion remains divided, with some netizens criticizing his emotional display as insincere.
“I didn’t date when I was a minor, but I met after I became an adult. I can’t say that falsehood is true because I can’t beat coercion.”
— Kim Soo Hyun at his March 31 press conference
Financial Strain on Kim Soo Hyun and Gold Medalist
The controversy has taken a toll on Kim Soo Hyun’s career and his agency, Gold Medalist. Over 20 endorsement deals have been suspended or terminated, with potential penalty fees estimated at 22 billion KRW (about 15.5 million USD). Additionally, the production of Kim Soo Hyun’s Disney+ series Knock-Off has been indefinitely halted. If the series is canceled, penalties could range from 18 billion to 180 billion KRW (12.3 million to 123 million USD), given the project’s 60 billion KRW budget.
Gold Medalist is reportedly facing financial difficulties, with insiders claiming the agency’s surplus funds of 2 to 3 billion KRW have been depleted. Operations have slowed, with reports of paused janitorial services and freelance contracts. The agency, heavily reliant on Kim Soo Hyun’s success, is seeking external investment to avoid collapse. Some speculate that the actor’s press conference was a strategic move to reassure investors and stabilize the company.
Ongoing Legal Battles
In addition to the advertiser lawsuits, Kim Soo Hyun is engaged in a separate 12 billion KRW (about 8.4 million USD) defamation lawsuit against Kim Sae Ron’s family and the Garosero Research Institute. The lawsuit targets claims that damaged his reputation, including allegations of an underage relationship. However, this case faced procedural issues when the court recorded the claim at 11 billion KRW, requiring corrections and additional fees of 38 million KRW.
Reports initially suggested Kim Soo Hyun missed the payment deadline, fueling rumors of financial strain. His legal team, LKB & Partners, clarified on April 17, 2025, that all fees were paid, and the extension request was to correct the defendant’s address, not due to unpaid fees. Despite this, the delay raised concerns about the lawsuit’s viability, with some predicting dismissal if procedural errors persist.
“We paid all the necessary court fees and delivery charges. It is not true that we failed to pay the lawsuit fees.”
— LKB & Partners, representing Kim Soo Hyun
Public and Netizen Reactions
Public reactions to Kim Soo Hyun’s situation are mixed. Some netizens support the advertisers’ actions, believing the controversy has tarnished his image. Comments on X and online forums include calls for brands to cut ties, with one user stating, “K-pop culture has desensitized people to grooming crimes.” Others defend Kim Soo Hyun, arguing that the allegations lack solid evidence and that he’s being unfairly targeted.
“This is truly a mess. They should at least be able to claim damages.”
“Just eat your food. His face doesn’t change the taste.”
— Netizen comments on a shabu-shabu restaurant flipping Kim Soo Hyun’s promotional placemats
International backlash has been significant, with Chinese fan clubs shutting down and businesses in Thailand discarding Kim Soo Hyun’s promotional materials. A viral video showed a photo booth tearing down his posters, reflecting the global impact of the controversy.
Impact on Kim Soo Hyun’s Career
Kim Soo Hyun’s career, once marked by high-profile endorsements and record-breaking drama fees, is at a crossroads. His role in Queen of Tears earned him 300 million KRW per episode, totaling 5 billion KRW for the series. However, the loss of endorsements and the suspension of Knock-Off have disrupted his momentum. The Kaohsiung Cherry Blossom Festival in Taiwan also reviewed his participation, with a potential penalty of 1.32 billion KRW if canceled.
Industry insiders warn that Gold Medalist’s reliance on Kim Soo Hyun makes it vulnerable. If the agency collapses, the actor could face further professional setbacks. Fans have launched petitions to support him, but boycott calls against associated brands continue, with 502,500 global mentions of the controversy tracked by CARMA, 42.5% of which were negative.
Current Status
As of April 29, 2025, Kim Soo Hyun faces mounting legal and financial challenges. The 30 billion KRW lawsuits from advertisers mark a significant escalation, with more brands likely to join. His defamation lawsuit against Kim Sae Ron’s family and Garosero remains active but faces public scrutiny. Gold Medalist is reportedly seeking funds to stabilize operations, while Knock-Off’s future hangs in the balance. The actor has not made a public statement since the advertiser lawsuits were reported, leaving fans and critics awaiting his next move.
Also Read: Kim Soo Hyun’s Career in Jeopardy as Disney+ Halts Knock Off Amid Underage Dating Scandal
CREDITS: YTN
