Actor Kim Soo Hyun is currently under scrutiny for his alleged involvement in a past relationship with the late Kim Sae Ron when she was a minor, as well as accusations of pressuring her regarding debt repayment. There are speculations in the industry that Disney+ may pursue a significant breach-of-contract lawsuit against him.
Kim Soo Hyun recently completed filming for Season 1 of 'Knock-Off' and was gearing up for Season 2 alongside his co-star Kim Ji Won. His visibility has been further enhanced by the tvN drama 'Queen of Tears'. The budget for 'Knock-Off', estimated at 60 billion KRW (around 41 million USD), is scheduled to release Season 1 in the first half of the year, followed by Season 2 in the latter half.
However, with the reemergence of allegations about Kim Soo Hyun's relationship with Kim Sae Ron, as well as claims of him pressuring her over debts related to a DUI incident, 'Knock-Off' may face delays.
Initially, the 'Knock-Off' production team announced on March 12th that Season 2 filming would continue as planned, following Kim Soo Hyun's denial of the accusations. Subsequently, the YouTube channel Garosero Research Institute (HOVERLABS) escalated the situation by releasing personal photos of Kim Soo Hyun and Kim Sae Ron. Consequently, his agency, Gold Medalist, altered its statement on March 14th, acknowledging that their relationship began after she reached adulthood.
On March 17th, Kim Sae Ron's family complicated matters further by sharing excerpts from her personal diary, alleging that their relationship started as early as 2015, when she was still a minor. The emergence of a 2017 fan photo showing the two near Kim Soo Hyun's residence added to suspicions that false statements may have been made.
Amidst the escalating controversy, there is talk that Disney+ may take legal action against Kim Soo Hyun for breaching the "morality clause" in his contract. Entertainment contracts commonly include clauses mandating celebrities to uphold a positive public image, crucial for the production and brand value.
With 'Knock-Off' having a hefty budget, Kim Soo Hyun's per-episode fee is estimated to be between 500 million to 800 million KRW, totaling over 5 billion KRW for the eight-episode series. If Disney+ pursues damages due to delays or a disrupted release, he could be held accountable for compensation beyond his appearance fee.
Given that breach-of-contract penalties may go up to 20-30% of a production's budget, Disney+ could potentially demand hundreds of billions of KRW in damages.
This scenario draws parallels to Kevin Spacey's situation, who encountered a comparable legal ordeal after being removed from Netflix's 'House of Cards' over sexual misconduct allegations. Netflix sued him for damages, resulting in a $30 million payment ordered by the U.S. courts. This financial setback led Spacey to liquidate his assets, and he admitted nearing bankruptcy in a 2018 interview.
An industry observer mentioned, "Similar to Netflix, Disney+ is a dominant global streaming platform. If they determine that Kim Soo Hyun's scandal has caused financial harm, they are likely to seek legal recourse. His response in the upcoming days will be pivotal in deciding the outcome."
As Kim Soo Hyun's reputation and career hang in the balance, all attention is focused on his next steps and how Disney+ will choose to react.