South Korean actor Kim Soo-hyun faces a ₩5.8 billion lawsuit from advertisers due to allegations of a past relationship with the late actress Kim Sae-ron, but a legal expert suggests he may not be held liable. The controversy, which has sparked public debate, involves claims that have led to significant professional and financial challenges for the actor, though the legal grounds for the penalties remain uncertain.
Background of the Lawsuit
On April 25, 2025, a retail brand, referred to as Company D, filed a lawsuit against Kim Soo-hyun and his agency, GOLDMEDALIST, at the Seoul Central District Court. The company is seeking ₩2.8 billion (approximately $2 million USD) in damages, claiming the actor breached his advertising contract due to the controversy surrounding his alleged relationship with Kim Sae-ron. This follows earlier lawsuits from two other companies, referred to as A and B, filed on April 28, 2025, which together demanded over ₩3 billion (approximately $2.1 million USD) for similar reasons.
The allegations stem from claims that Kim Soo-hyun dated Kim Sae-ron when she was a minor, starting in 2015 when she was 15 years old. These claims were amplified by Kim Sae-ron’s family and the YouTube channel Garo Sero Research Institute (also known as HoverLab), which released alleged text messages from 2016. One message reportedly read, “Give me a real kiss later. Is that forbidden too?” The controversy intensified after Kim Sae-ron’s death by suicide in February 2025, with her family alleging that Kim Soo-hyun pressured her to repay a ₩700 million debt, contributing to her distress.

Legal Expert’s Analysis
In a YouTube video posted on May 2, 2025, by Entertainment President Lee Jin-ho, titled “Is Kim Soo-hyun Finished…? Sued for ₩5.8 Billion KRW by Advertisers—Who Will Pay?”, Kim Kyung-nam, a lawyer from For You Law Firm, provided a detailed legal analysis. He argued that Kim Soo-hyun is unlikely to be held liable for the ₩5.8 billion in damages.
“Even if the relationship occurred, it’s important to note that under Korean law at the time, only sexual relations with minors under 13 were criminalized,” Kim Kyung-nam said.
He emphasized that for advertisers to succeed in their lawsuit, they must prove that Kim Soo-hyun’s actions directly caused measurable damage to their campaigns and that he acted with intent or negligence.
“It’s not enough to say there was public controversy. You have to demonstrate that the advertising campaign was negatively affected in a measurable way and that Kim Soo-hyun acted with intent or negligence. The burden of proof lies with the advertisers,” Kim Kyung-nam explained.
The lawyer also addressed the timing of the alleged relationship. Kim Soo-hyun has denied dating Kim Sae-ron when she was a minor, stating at a March 31, 2025, press conference that their relationship began in 2019, after she was an adult, and lasted about a year. Kim Kyung-nam noted that if the relationship occurred after Kim Sae-ron was an adult, the controversy may stem from unverified claims spread by others, not from Kim Soo-hyun’s actions.
“If the relationship began after both were adults in 2019 and the scandal erupted much later, then the real issue lies with those spreading unverified claims, not Kim Soo-hyun himself,” he added.
Potential Liability of Other Parties
Kim Kyung-nam suggested that if the allegations are proven false or exaggerated, Kim Sae-ron’s family or Kim Se-ui, head of Garo Sero Research Institute, could face defamation or liability. The YouTube channel has been accused of profiting from unverified claims, with some videos reportedly earning millions of won in ad revenue. Kim Soo-hyun’s legal team has already filed a ₩12 billion (approximately $8.16 million USD) defamation lawsuit against Kim Sae-ron’s family, an unidentified woman claiming to be her aunt, and Garo Sero Research Institute, alleging false accusations and stalking.
On April 19, 2025, Kim Soo-hyun’s attorney confirmed that all required litigation fees, approximately ₩38 million (about $26,790 USD), were paid, countering rumors of financial difficulties. The lawyer also stated that forensic analysis showed the leaked KakaoTalk messages were not sent by Kim Soo-hyun, accusing Kim Sae-ron’s family of manipulation.
Impact on Kim Soo-hyun’s Career
The controversy has had a significant impact on Kim Soo-hyun’s professional life. Multiple brands, including K2 Korea, Shabu All Day, Dinto, and CJ Foodville (for Tous Les Jours), have removed promotional materials or ended contracts with the actor. Prada reportedly replaced him with a 19-year-old idol as their ambassador. Industry estimates suggest that penalties from terminated contracts could reach up to ₩20 billion (approximately $13.7 million USD) if more brands pursue legal action.
The Disney+ drama Knock Off, in which Kim Soo-hyun stars, has been indefinitely postponed. The 18-episode series, with a production budget of ₩60 billion (approximately $41 million USD), had completed filming for its first season. Kim Soo-hyun was paid ₩500 million (approximately $341,354 USD) per episode, totaling ₩9 billion (approximately $6.14 million USD). If the drama is canceled, he could face damages ranging from ₩18 billion to ₩180 billion (approximately $12.3 million to $123 million USD).
Despite these setbacks, Kim Soo-hyun remains a prominent figure. On May 1, 2025, he ranked third in the star power chart, following Byeon Woo-seok and Kim Hye-yoon, according to the Korea Corporate Reputation Research Institute. His luxury apartment in Galleria Foret also surged in value by ₩5.3 billion, highlighting his continued financial standing.
Public and Fan Reactions
Public opinion remains divided. Some netizens criticized Kim Soo-hyun’s emotional press conference, calling his tears insincere. Others expressed sympathy, arguing that unverified claims have unfairly damaged his reputation.
“Why is everyone so quick to believe rumors? If the messages are fake, Kim Soo-hyun is the victim here.”
“Suing a deceased person’s family feels wrong, no matter what happened.”
“The brands are just protecting their image. Kim Soo-hyun shouldn’t have to pay for gossip.”
Fans have rallied in his defense. On April 22, 2025, Kim Soo-hyun’s Fans’ Union**, including members from *Daum Café Eucharis* and DC Inside Kim Soo Hyun Gallery, announced plans to file criminal complaints against individuals spreading malicious rumors online. Posts on X reflect ongoing support, with some fans questioning why Kim Sae-ron’s family or other parties, like her alleged abusive ex-husband, are not facing scrutiny.
Financial Strain on GOLDMEDALIST
The controversy has also affected GOLDMEDALIST, Kim Soo-hyun’s agency. Reports suggest the agency is facing financial difficulties, with a financial analyst stating that its surplus of ₩2 to ₩3 billion (approximately $1.36 million to $2.04 million USD) has been depleted. The agency reportedly suspended its contract with an external cleaning service to cut costs. Rumors of potential bankruptcy surfaced, but GOLDMEDALIST has not confirmed these claims and is reportedly seeking external investment.
On March 31, 2025, Kim Soo-hyun’s press conference was seen by some as an attempt to reassure investors and stabilize the agency’s position. However, the cancellation of over 20 endorsement deals has put significant pressure on the agency’s finances.
As of May 3, 2025, Kim Soo-hyun’s legal team has not issued a new statement regarding the ₩5.8 billion lawsuit. The burden of proof remains with the advertisers, who must demonstrate that Kim Soo-hyun’s actions directly caused financial losses. Meanwhile, Kim Soo-hyun continues to pursue his ₩12 billion defamation lawsuit against Kim Sae-ron’s family and Garo Sero Research Institute.
Also Read: Kim Soo-hyun’s Galleria Foret Apartment Sets Record with 9 Billion KRW Sale
The outcome of these legal battles will likely depend on the evidence presented in court. If the allegations are proven false, Kim Soo-hyun may avoid significant penalties and could shift liability to those who spread the claims. For now, the actor maintains his innocence, and his fans continue to support him as the legal process unfolds.
credit: nate