Will Disney+ Take Legal Action Against Kim Soo Hyun for Causing a Delay in His Drama Knockoff as Industry Experts Predict a Tough Outcome Due to Ongoing Controversy?
Actor Kim Soo Hyun is facing potential financial repercussions due to the ongoing controversy surrounding his past involvement with the late actress Kim Sae Ron when she was a minor. Amidst growing global backlash, reports indicate that his upcoming Disney+ K-Drama, Knockoff, has been delayed, leading industry insiders to speculate about a possible breach of contract lawsuit from the streaming giant.
Drama Delay and Potential Financial Fallout
The delay of Knockoff is not only creating uncertainty around its release but is also expected to negatively impact the brands that have partnered with the show. Furthermore, with a second season already approved, the stakes are considerably high. Given the escalating controversy, industry sources suggest that Disney+ might pursue a substantial lawsuit against Kim Soo Hyun for breach of contract.
Celebrity contracts for dramas, movies, and endorsements typically include a morality clause. This clause mandates that the celebrity maintain a positive public image. Any involvement in a controversy can make the celebrity financially responsible for damages caused to the brand or project.
Production Costs and Potential Damages
The Disney+ K-Drama Knockoff reportedly had a significant production budget of ₩60.0 billion KRW (approximately $41.6 million USD), with Kim Soo Hyun‘s fee estimated to be between 10-20% of this total. Known as one of the highest-paid actors in Korea, his earnings are reportedly between ₩500 million KRW (about $346,000 USD) and ₩800 million KRW (about $554,000 USD) per episode. For the 8-episode series, his total pay is estimated to be over ₩5.00 billion KRW (about $3.46 million USD).
If Disney+ decides to take legal action, Kim Soo Hyun could be liable for not only his appearance fee but also for damages incurred due to production delays or the potential cancellation of the show. Industry standards suggest that in case of a contract breach, an actor might be required to pay 20-30% of the total production cost as damages. This could mean Disney+ seeking a settlement worth tens of billions of Korean won from Kim Soo Hyun.
Ripple Effect on Other Brands
A lawsuit from Disney+ could also set a precedent for other brands that Kim Soo Hyun endorses, which reportedly include around 15 companies such as Shinhan Bank, Homeplus, and Jo Malone. If Disney+ initiates legal action and demands contract termination penalties, these other brands might follow suit, significantly increasing Kim Soo Hyun‘s financial burden.
Precedent from Netflix and Kevin Spacey
An industry insider drew a parallel to Netflix’s lawsuit against Kevin Spacey. In 2018, Netflix sued Spacey after allegations of sexual misconduct surfaced, leading to his removal from the show House of Cards. Netflix successfully sued him for $30 million USD in damages, reportedly pushing him to the brink of bankruptcy.
The insider commented,
Disney+ is considered a global OTT company, just like Netflix. If an actor’s personal controversy causes financial damages, chances are that he will be held liable. Kim Soo Hyun’s response to the situation will play an important role in deciding the outcome.
Agency Response
Meanwhile, Kim Soo Hyun’s agency, Gold Medalist, recently released a detailed statement refuting the claims made by the late Kim Sae Ron’s family.
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