Actor Kim Soo Hyun (37) is involved in a ₩2.8 billion lawsuit filed by a cosmetics brand called Company A alleging breach of advertising contractual obligations due to a personal scandal involving the late actress Kim Sae Ron.
On November 21, the 22nd Civil Division of the Seoul Central District Court held the first hearing of the case, which was initially filed seven months ago in April. The case marks the formal start of legal proceedings between Kim Soo Hyun and Company A.
The cosmetics brand claims that Kim Soo Hyun violated a morals clause in the contract due to her alleged association with the Kim Sae Ron controversy, making it impossible for them to continue the advertising partnership. The legal representative of company A stated: “As a result of the scandal, Mr. Kim breached his duty to respect public decency, rendering the contract in breach. We seek damages accordingly.”
Tensions rose during the hearing as both sides argued over the interpretation of specific clauses in the contract. Company A argued that while unverified rumors may not constitute a violation, any confirmed misconduct should be treated as a violation that impacts public perception. Kim Soo Hyun’s legal team responded firmly, saying: “There is no confirmed misconduct. The clause does not apply in this case and Company A’s interpretation is incorrect.”
To further support their claim, Company A highlighted: “The cosmetics brand relies heavily on the public image of its models. This situation represents a significant reason to terminate the contract.”
Kim Soo Hyun’s representatives argued that the actor had not violated any obligations regarding public conduct, stating: “This does not constitute a breach of the morals clause, nor was there any fault on the part of the defendant which would justify termination of the contract or compensation for damages.”
In early March, Company A announced on its official social media channels that it would be terminating Kim Soo Hyun’s advertising contract, which runs until August 2025. Although no direct accusations were made, the announcement subtly referred to the scandal involving Kim Sae Ron.
In its official statement, the brand said it had delayed terminating the contract until Kim’s agency received a formal response. Once they received the request, they determined there were sufficient grounds to terminate the contract and initiated the process through legal counsel, citing the need to uphold brand integrity and consumer trust.
Kim Soo Hyun’s camp continues to deny any wrongdoing and remains firm in their position that the contract was terminated without valid legal justification.
Sources: born
