An advertiser that sued actor Kim Soo Hyun for damages has significantly reduced its claim after Garosero Research Institute head Kim Se Ui was arrested on charges related to spreading false information about the actor. The court has now recommended that the advertiser withdraw the lawsuit entirely.

On July 8, the Seoul Central District Court’s Civil Division 45 held the second hearing in the damages lawsuit filed by outdoor brand Eider against Kim Soo Hyun and his agency, Gold Medalist. Eider had appointed Kim as its advertising model last year but filed the lawsuit in August 2025 after allegations surfaced claiming he had dated the late actress Kim Sae Ron while she was still a minor, arguing that the controversy had damaged the company’s brand image.

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During the hearing, Eider withdrew its original claim seeking compensation for reputational damage and reduced the amount sought from approximately ₩2.5 billion to around ₩400 million. The company stated that it would only seek the return of the remaining model fees stipulated under the endorsement contract.

However, the court indicated that Eider appeared to have changed its legal strategy after concluding that its original damages claim would likely be difficult to prove. The judges further questioned whether even the revised claim would be legally sustainable.

The court also noted that both Eider and the defendants, Kim Soo Hyun and Gold Medalist, had suffered harm due to the allegations raised by Kim Se Ui. Taking into account that Kim Soo Hyun’s side is reportedly negotiating with other advertisers, the court recommended that Eider consider withdrawing the lawsuit, maintaining the endorsement agreement, and allowing each party to bear its own legal costs.

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This hearing marks the first case in which an advertiser has withdrawn a multi-billion-won damages claim against Kim Soo Hyun following Kim Se Ui’s arrest, instead limiting its demand to the return of contractual model fees. The development has drawn attention over whether it could influence similar lawsuits filed by other advertisers.

Kim Soo Hyun is currently facing damages lawsuits totaling approximately ₩10 billion from multiple companies, including Eider, FromBIO, Classys, Cuckoo Electronics, and Trendmaker.

Beginning in March last year, Kim Se Ui repeatedly claimed through YouTube broadcasts and other platforms that Kim Soo Hyun had been in a relationship with the late Kim Sae Ron while she was underage and was responsible for her death. Representing Kim Sae Ron’s family, he also held press conferences where he released what he claimed were voice recordings of the actress and KakaoTalk conversations between her and Kim Soo Hyun.

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Investigators later concluded that the alleged voice recordings had been fabricated using generative artificial intelligence (AI) and that the KakaoTalk messages had also been manipulated.

As a result, police sought an arrest warrant for Kim Se Ui on May 14 on charges including defamation through the dissemination of false information under the Information and Communications Network Act, violations of the Anti-Stalking Act, illegal distribution of recorded materials under the Sexual Violence Punishment Act, intimidation, and attempted coercion. The court approved the warrant after determining there was a risk of evidence destruction and flight, and Kim Se Ui was formally indicted while in custody on June 23.

Following Kim Se Ui’s arrest, Gold Medalist released an official statement expressing gratitude to those who had continued to support Kim Soo Hyun while legal proceedings were ongoing.

The agency stated, “Although they were not directly involved in the case, we sincerely thank everyone who continued to speak up on behalf of Kim Soo Hyun while waiting for the legal process to unfold. We also appreciate those who worked diligently to uncover the truth and everyone who helped ensure that the facts surrounding this case became widely known.”

The third hearing in Eider’s damages lawsuit against Kim Soo Hyun and Gold Medalist is scheduled for August 26.

Sources: Nate