South Korean actor Kim Soo Hyun is battling multiple lawsuits from brands seeking compensation after his public image suffered due to a scandal involving the late actress Kim Sae Ron. At least four companies have filed lawsuits totaling 7.34 billion KRW (about $5.3 million USD) for contract violations linked to morality clauses.
The controversy started when YouTube channel Hoverlab accused Kim Soo Hyun of having an inappropriate relationship with Kim Sae Ron when she was a minor. Although he denied the claims, the backlash led several brands to drop him as their ambassador. Many contracts include clauses that allow companies to seek penalties if a celebrity’s actions harm their reputation.
Breakdown of the Lawsuits
- From Bio (Health Supplements) – 3.96 Billion KRW ($2.83 Million USD)
From Bio signed Kim Soo Hyun in October 2024 after his hit drama Queen of Tears. When the scandal broke in March 2025, the company pulled all ads and sued for damages on May 16. - Cuckoo Holdings (Home Appliances) – 2.83 Billion KRW ($2.02 Million USD)
Cuckoo, a long-time partner, filed multiple lawsuits through subsidiaries like Cuckoo Electronics and Cuckoo Homesys. They also froze 100 million KRW ($73,500 USD) of his assets in April. - Trendmaker (Vegan Cosmetics Brand Dinto) – 501 Million KRW ($358,000 USD)
Trendmaker ended its contract in March and sued on April 25, claiming financial losses due to the scandal. - Classys (Medical Aesthetics) – 3 Billion KRW ($2.2 Million USD, Asset Seizure)
Classys seized one of Kim Soo Hyun’s luxury apartments in Seoul after he failed to pay penalties. The court approved the seizure on May 20.
What Are Morality Clauses?
Many celebrity contracts include morality clauses that allow brands to cut ties and demand compensation if the star’s behavior damages their image. Legal experts say companies must prove the scandal directly hurt their sales or reputation to win these cases.
Kim Soo Hyun’s legal team argues he is a victim of false accusations by Hoverlab. They claim the real blame lies with the YouTuber, not the actor.
“Kim Soo Hyun is a victim of a crime by Hoverlab. The penalty should go to the perpetrators, but Kim’s the one being blamed even though he’s a victim, just because he’s bound by the contract.”
– Kim’s lawyers at LKB & Partners
Will Kim Soo Hyun Have to Pay?
Courts often approve asset seizures early in lawsuits to prevent defendants from hiding money. However, final rulings depend on whether brands can prove their losses were directly caused by the scandal.
Kim Soo Hyun’s side is fighting back. His agency, Gold Medalist, successfully seized two apartments owned by Hoverlab’s operator, Kim Se-ui, worth 4 billion KRW ($2.9 million USD). They also filed a 12 billion KRW ($8.7 million USD) defamation lawsuit against him.
Meanwhile, Kim Sae Ron’s family has countersued, accusing the actor of violating child welfare laws.
Public Reaction
Online discussions show mixed reactions:
“Only ₩7.30 billion KRW (about $5.33 million USD)…? Isn’t that too little?”
“Rooting for the advertisers… Make sure you get what you’re owed!”
“If he really charged ₩700 million KRW (about $511,000 USD) per episode for his K-Dramas, these penalties are pocket change.”
“Homeplus should sue him, too.”
“For Kim Soo Hyun, that’s probably pocket change. All he has to do is sell one of his properties.”
“He’s got tons of money anyway, just pay up.”
“Any word from Disney?”
“Star Kim Soo Hyun probably owns a lot of real estate, so whatever.”
What’s Next?
More brands may join the lawsuits if they believe Kim Soo Hyun’s scandal hurt their business. Legal battles could take months or even years to resolve. For now, the actor has paused all entertainment activities.
Also Read: Kim Soo Hyun’s Luxury Apartment Seized by Advertiser Over Unpaid Penalty Fee; Legal Battle Escalates
