Kim Soo-hyun faces wave of lawsuits from advertisers over scandal fallout

Kim Soo-hyun / Xportsnews

Actor Kim Soo-hyun is facing a string of lawsuits from advertisers seeking tens of billions of won in damages, following a recent scandal that has damaged his public image.

On Wednesday, New Daily reported that several of the 16 brands that had signed Kim as their advertising model are either considering legal action or have already filed lawsuits. At the center of these disputes is a standard clause found in celebrity endorsement contracts known as the “morality clause.”

The clause typically states that the celebrity (“Party B”) must not engage in any behavior that violates the law or causes public controversy, as such conduct could harm the image of the company (“Party A”). If breached, the contract may be terminated early, and the celebrity may be required to repay their modeling fee.

Kim became the subject of controversy after rumors spread that he had dated the late actress Kim Sae-ron while she was still a minor. As the speculation gained traction online, public criticism intensified, prompting many brands to pull advertisements featuring the actor.

In response, a number of companies began reviewing whether Kim’s alleged actions violated the morality clause, and some have proceeded to file compensation claims. According to the report, lawsuits have been filed against Kim ranging from 500 million won to over 3.9 billion won (approximately $2.8 million). The total damages sought amount to more than 7.3 billion won.

However, Kim has denied the allegations of an underage relationship, saying he dated the late Kim Sae-ron only after she became a legal adult. Even if the relationship had occurred earlier, legal experts say there is room for debate over whether actions that took place before the signing of a contract can be considered a violation of the morality clause. This point is likely to become a key issue in the upcoming legal disputes.

On June 13, it was reported that a consumer electronics company, which had employed Kim as a model for 10 years, applied for a provisional seizure of assets worth 100 million won in April. The Seoul Eastern District Court approved the request on May 20, and the company followed up last month by filing a lawsuit against the actor for 850 million won in damages.

Separately, on May 8, a medical device company that had also used Kim in its advertisements applied for a provisional real estate seizure. The court accepted the request, ordering a freeze on Kim’s ownership stake in a luxury apartment at Galleria Foret in Seoul. The seizure request was reportedly tied to an earlier compensation demand of 3 billion won.

The medical device firm claims that following the scandal involving the late Kim Sae-ron, it terminated its advertising contract with Kim and demanded a penalty fee — which he has yet to pay, prompting the asset seizure.

This article from Xportsnews is translated by a generative AI system and edited by The Korea Times.