Kim Soo-hyun case signals dangerous new era of AI cybercrime

After an arrest warrant was sought for the notorious YouTuber who allegedly used artificial intelligence (AI) to spread malicious rumors about actor Kim Soo-hyun, the resulting damages lawsuit is expected to expand from 12 billion won to a staggering 30 billion won ($20 million).

Kim Se-ui, operator of the controversial YouTube channel HoverLab (Garo Sero Institute), was taken into custody Wednesday. The case gained nationwide attention last year when the channel released an audio recording of deceased actor Kim Sae-ron allegedly discussing her relationship with Kim Soo-hyun, sparking intense public backlash and forcing the actor to halt his activities for over a year.

However, police have now concluded that the audio was generated using AI voice technology.

The actor's legal representative, Ko Sang-rok, characterized the incident as unprecedented.

"They not only manipulated public perception by spreading unverified allegations and distorting narratives, but even fabricated core evidence such as KakaoTalk messages and voices," Ko said.

The case caused immense financial and professional damage to the actor, effectively freezing his advertisements, overseas schedules and content. Notably, it disrupted the release schedule of "Knock Off," a new Disney+ series with a 60 billion won budget.

"'Queen of Tears' was a massive global hit, but after Kim Se-ui raised these false allegations, everything came to a complete halt," Ko said.

"Last year, we filed a 12 billion won damage lawsuit, but based on the data we have currently submitted to the investigative authorities regarding the actual damages incurred, we now estimate the losses to be around 30 billion won."

Industry experts view this case as a highly symbolic turning point.

They note that while malicious YouTubers, known as "cyber wreckers" here, relied on selective editing or provocative speculation in the past, this incident represents a "technology-integrated crime" that weaponized deepfakes and AI voice manipulation.

"The case demonstrates the immense destructive power generated when AI technology meets a plausible narrative," said culture critic Jung Duk-hyun.

"Although the truth was ultimately revealed, I think it's only because it was someone of Kim Soo-hyun's stature that he was able to track it down and uncover the truth. An ordinary person without such means would have been completely ruined."

Jung warned that the financial incentives for cyber wreckers who monetize their video content make the recurrence of such crimes extremely likely. However, he cautioned against unconditional regulations on AI technology itself.

"Video production currently relies on technologies like de-aging, so we cannot ban the technology entirely," Jung explained. "Rather, regulations should focus on heavily punishing the specific areas of misuse and making those legal boundaries crystal clear."

Despite the police investigation ostensibly clearing his name, critics note that Kim Soo-hyun still faces obstacles in fully restoring his public image.

Recent friction with the family of the late Sulli — who co-starred with Kim in the 2017 movie "Real" — regarding alleged coercion during the filming process has kept the actor under intense public scrutiny.

Nonetheless, Kim is expected to make a comeback. Culture critic Ha Jae-keun cautiously predicted a resumption of activities. "Public sentiment toward Kim Soo-hyun reversed after the police announced their investigation results. With growing public support, views are emerging that he may soon release his delayed drama."

Regarding the eventual release of "Knock Off," however, Disney+ maintained a conservative stance, stating, "There are no changes to report at this time."