The Seoul Central District Court held its first hearing on November 21 in a damages lawsuit brought by cosmetics brand ‘A’ against South Korean actor Kim Soo-Hyun over an alleged breach of contract.
The company has dramatically escalated its initial demands, now seeking 2.86 billion Korean won, approximately $1.95 million, in total compensation.
The advertising model contract between Kim Soo-Hyun and brand ‘A’ was originally set to expire in August 2025. However, the cosmetics company terminated the agreement prematurely in March, citing serious concerns that prevented fulfillment of the advertising contract. This termination followed months of controversy surrounding Kim Soo-Hyun after allegations emerged in February that he had dated actress Kim Sae-Ron when she was still a minor.
In its legal filing, cosmetics brand ‘A’ claims Kim Soo-Hyun failed to maintain a respectful public image as required by the contract and suffered significant financial damages as a result. The company justified the increased damages demand by pointing to contract provisions stating that in cases of breach, the responsible party must pay double the modeling fee, in addition to other penalties and actual damages incurred.
Kim Soo-Hyun’s legal team firmly contested these claims during the hearing. His representatives argued that no contractual clause explicitly obligated the actor to maintain a particular public image and, therefore, no breach of contract occurred. They further disputed the underlying allegations, stating that Kim Soo-Hyun and Kim Sae-Ron dated only after she became an adult, rejecting claims they had a relationship while she was a minor. The defense contended that without evidence of a contractual breach, the actor bears no liability for the demanded damages.
The cosmetics brand’s decision to terminate reflected broader industry fallout, as multiple companies moved to end their agreements with Kim Soo-Hyun following the scandal. Beyond brand ‘A’, various other advertisers and endorsement partners initiated separate damages claims totaling approximately 7.3 billion won, roughly $5 million, against the actor.
The next hearing in this case has been scheduled for March 13, 2026, where both parties will continue presenting their legal arguments regarding the scope of damages and contractual obligations.