The penalty fees for the late Lee Sun-kyun are 3~5 billion won “About half of the expected amount of 10 billion won”

Typically, these penalty fees range from 2 to 3 times the appearance fee. This is why the size of the penalty skyrockets for a celebrity with numerous projects. Even the late actor Lee Sun-kyun, who faced investigation for drug use allegations before his passing, is not an exception.

Lee Sun-kyun was one of the most successful actors in the film industry. He also appeared in numerous commercials. However, when allegations of drug use surfaced, companies immediately withdrew their advertisements featuring him. Therefore, whenever a celebrity becomes embroiled in controversy, it’s an industry practice to quickly terminate contracts and demand penalty fees.

Legally, penalty fees refer to compensation for damages. While the specific details of penalty fees in private contracts are not publicly disclosed, in cases where celebrities violate laws or cause social controversies, a penalty fee equivalent to about 2 to 3 times the contractual amount may be imposed. Contracts typically include clauses stating that individuals must not engage in acts that violate laws or cause social controversy, or damage brand images morally.

“No Way Out”, in which Lee Sun-kyun was scheduled to appear, was expected to be an 8-episode series. Considering that he received around 200 million won per episode for his role in SBS’s drama “Payback” last year, his earnings from the drama alone were estimated to be around 1.6 billion won. Although the scale and significance of the two unreleased movies he left behind differ, it’s estimated that he received a premium treatment of around 1 billion won per film. Based on this, his penalty fees for film contracts and advertisements are estimated to be around 10 billion won.

However, industry insiders believe that the actual penalty fees incurred may only be about 30 to 50% of the estimated 10 billion won. In reality, there have been no cases in the film industry where penalty fees were demanded from actors involved in controversies. This is because films often complete production smoothly and can be released at an appropriate time afterward.

Source: Nate