Actor Kim Soo Hyun (37) is embroiled in a ₩2.8 billion lawsuit filed by a cosmetics brand referred to as Company A which claims a breach of advertising contract obligations due to a personal scandal involving the late actress Kim Sae Ron.
On November 21, the Civil Division 22 of the Seoul Central District Court held the first hearing of the lawsuit, which was initially filed seven months ago in April. The case marks the formal beginning of legal proceedings between Kim Soo Hyun and Company A.

The cosmetics brand asserts that Kim Soo Hyun violated a moral clause in their contract due to his alleged association with the controversy surrounding Kim Sae Ron, making it impossible for them to continue the advertising partnership. Company A’s legal representative claimed, “Due to the scandal, Mr. Kim violated his duty to uphold public decency, rendering the contract unfulfillable. We are seeking damages accordingly.”
Tensions escalated during the hearing as both sides debated the interpretation of specific clauses in the contract. Company A argued that while unverified rumors may not constitute a breach, any confirmed misconduct should be treated as a violation that impacts public perception. Kim Soo Hyun’s legal team countered firmly, saying, “There is no confirmed misconduct. The clause does not apply in this case, and the interpretation by Company A is flawed.”

Further supporting their claim, Company A emphasized, “Cosmetics branding relies heavily on the public image of its models. This situation presents a significant reason to terminate the contract.”
Kim Soo Hyun’s representatives maintained that the actor did not breach any obligations related to public conduct, stating, “This does not constitute a violation of the moral clause, nor was there any fault on the defendant’s part that would justify contract termination or damages.”
Previously in March, Company A announced on its official social media channels that it would terminate Kim Soo Hyun’s advertising contract, which was valid until August 2025. Although no direct accusations were made, the announcement subtly referred to the scandal involving Kim Sae Ron.

In their official statement, the brand said they had delayed terminating the contract until Kim’s agency made a formal response. Once that was received, they determined there were sufficient grounds to end the contract and began the process through legal counsel, citing a need to uphold brand integrity and consumer trust.
Kim Soo Hyun’s camp continues to deny any wrongdoing and remains firm in their stance that the contract was terminated without valid legal justification.
Sources: nate

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