Could Disney+ Sue Kim Soo Hyun? — Industry Insiders Anticipate Harsh Outcome
Actor Kim Soo Hyun could potentially suffer significant financial damages due to his ongoing controversy.
Embroiled in allegations of being romantically involved with the late actress Kim Sae Ron when she was just 15, Kim Soo Hyun is currently facing major backlash from all over the globe. Amid this situation, it was reported that his upcoming Disney+ K-Drama Knockoff had been delayed.
The uncertainty surrounding the show’s release is also expected to negatively affect the brands that have partnered with Knockoff. In addition, the drama has already been approved for a second season, making the stakes even higher. With the controversy only growing, industry insiders have suggested that Disney+ may pursue a massive breach of contract lawsuit against Kim Soo Hyun.
Usually, in celebrity contracts for dramas, movies, or brand endorsements, a morality clause is included that requires the celebrity to maintain a positive public image. If a celebrity gets involved in any controversy, they can potentially be held financially liable for causing damage to the brand or the project.
The Disney+ K-Drama reportedly had a production budget of ₩60.0 billion KRW (about $41.6 million USD), with approximately 10-20% of it allocated for Kim Soo Hyun’s fee alone. He is well-known as one of the highest-paid actors in Korea, with a reported earning of ₩500 million KRW (about $346,000 USD) to ₩800 million KRW (about $554,000 USD) per episode. By that standard, his pay for this 8-episode series is estimated to be over ₩5.00 billion KRW (about $3.46 million USD).
In case Disney+ chooses to take legal action against Kim Soo Hyun, he could be held responsible for compensating not only his appearance fee but also the damages incurred due to production delays or potential shelving of the show. As per industry standards, an actor can be required to pay 20-30% of the total production cost in damages in case of a contract breach. So, Disney+ could be looking at a settlement worth tens of billions of won from Kim.
A lawsuit like that could also trigger similar legal actions by some 15 odd brands including Shinhan Bank, Homeplus, and Jo Malone, that Kim Soo Hyun models for. If Disney+ sets a precedent with a lawsuit for the other brands to also demand contract termination penalties, Kim Soo Hyun’s financial burden could compound significantly.
An industry insider alluded to Netflix‘s lawsuit against Kevin Spacey to explain how the situation with Kim Soo Hyun could unfold. In 2018, the OTT giant sued Spacey after he was accused of sexual misconduct, leading to his removal from House of Cards. Netflix successfully sued him for 30 million USD in damages, forcing him to sell assets. The actor later admitted that he was on the verge of bankruptcy because of the penalties.
Disney+ is considered a global OTT company, just like Netflix. If an actor’s personal controversy causes finanical damages, chances are that he will be held liable. Kim Soo Hyun’s response to the situation will play an important role in deciding the outcome.
— Industry insider
Meanwhile, Kim Soo Hyun’s agency, Gold Medalist recently published a lengthy statement refuting claims made by the late Kim Sae Ron’s family. Read about it here:
