Kim Soo-hyun Faces Potential "Bankruptcy" if Disney+ Takes Legal Action

Actor Kim Soo-hyun, who is embroiled in allegations of having dated the late Kim Sae-ron when she was a minor and pressuring her for debt repayment, may face a massive penalty lawsuit from Disney+

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Actor Kim Soo-hyun, who is embroiled in allegations of having dated the late Kim Sae-ron when she was a minor and pressuring her for debt repayment, may face a massive penalty lawsuit from Disney+

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Currently, Kim Soo-hyun has completed Season 1 of Disney+’s original series “Knock-Off” and is set to begin filming for Season 2. The production budget was 60 billion KRW. “Knock-Off” is scheduled for a split release, with Season 1 airing in the first half of this year and Season 2 following in the latter half.

Disney+ trusted him… But Kim Soo-hyun is suspected of lying Disney+ may file a massive penalty lawsuit against Kim Soo-hyun If a global OTT company sues… Even Hollywood actors have faced bankruptcy

However, allegations that Kim Soo-hyun dated Kim Sae-ron while she was a minor and pressured her to repay debts related to her drunk driving accident have cast a shadow over “Knock-Off“‘s production schedule.

Initially, the “Knock-Off” team announced on March 12 that they would proceed with Season 2 filming as scheduled, based on Kim Soo-hyun’s firm denial of the allegations.

This decision prompted Garo Sero Institute to escalate their revelations. Garo Sero Institute released several private photos of Kim Soo-hyun and Kim Sae-ron, forcing Kim Soo-hyun’s agency Gold Medalist to revise its previous statement. On March 14, the agency admitted that Kim Soo-hyun and Kim Sae-ron had indeed dated—but only after she became an adult in 2019.

The situation worsened when Kim Sae-ron’s family claimed on March 17 that her diary contained exact dates proving she had dated Kim Soo-hyun since 2015, when she was still a minor. Furthermore, it was revealed that she had received not just one but two certified letters from Kim Soo-hyun’s agency demanding debt repayment.

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Additionally, a resurfaced 2017 post from one of Kim Sae-ron’s fans showed a photo of Kim Soo-hyun and Kim Sae-ron together in front of an apartment elevator, fueling speculation that Kim Soo-hyun had made false claims about their relationship timeline.

As the controversy grows, industry insiders suggest that Disney+ could pursue a massive breach-of-contract lawsuit against Kim Soo-hyun.

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Most celebrity contracts for advertisements, dramas and films include a “morality clause”, which requires them to maintain a positive public image. If a celebrity causes social controversy, they can be held financially liable for damages to the brand or work.

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With a production budget of 60 billion KRW, “Knock-Off” allocated approximately 10~20% of that to the lead actor. Given that Kim Soo-hyun reportedly earns 500~800 million KRW per episode, his total payment for the 8-episode series could exceed 5 billion KRW.

If Disney+ initiates legal action, Kim Soo-hyun could be held responsible not only for his contracted fee but also for compensation related to production delays and potential cancellation of the series.

Industry standards suggest that when an actor breaches their contract, they can be required to pay 20~30% of the total production cost in damages. If applied to “Knock-Off“, Disney+ could potentially demand a tens-of-billions-won settlement from Kim Soo-hyun.

Kim Soo-hyun is currently a model for more than 15 brands, including Shinhan Bank, Homeplus, Prada, Jo Malone and Cuckoo. If Disney+ sets a precedent with a lawsuit, these companies may also demand contract termination penalties, compounding his financial burden.

There is already precedent for a major streaming platform holding an actor financially accountable.

Hollywood actor Kevin Spacey was sued by Netflix over allegations of sexual misconduct, which led to his removal from “House of Cards” in 2018.

Netflix successfully sued Kevin Spacey for 30 million USD in damages. A U.S. court ruled in Netflix’s favor, forcing Spacey to sell off assets to cover the penalty.

During a 2018 interview with a British broadcaster, Spacey admitted, “I had to sell my house. The legal fees and massive penalties have left me on the brink of bankruptcy.”

An industry insider commented, “Like Netflix, Disney+ is a global OTT giant. If Kim Soo-hyun’s personal controversy causes financial losses, Disney+ could very well hold him legally accountable. His response to the situation will be a critical factor in determining the outcome.”

All eyes are now on Kim Soo-hyun’s next move—and on whether Disney+ will take legal action against him.

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