Court orders Kim Soo-hyun to pay W1.16b to advertiser over privacy scandal

A court has ordered actor Kim Soo-hyun to pay 1.16 billion won ($871,000) to an advertiser over a privacy scandal.

The Suwon District Court's Civil Division 14, presided over by Judge Moon Hyun-ho, ruled Friday in a partial victory for health supplement company From Bio, which had filed a damages suit against Kim and agency Goldmedalist.

From Bio had sought 3.96 billion won in damages, but the court recognized liability for only about 30 percent of that amount — 1.16 billion won. The court also ordered From Bio to bear 70 percent of litigation costs, with the defendants covering the remaining 30 percent.

The lawsuit stemmed from allegations that Kim had dated actor Kim Sae-ron while she was a minor. From Bio, which had used Kim as an advertising model, claimed the controversy severely damaged its brand value and corporate image.

Kim's side had consistently denied the allegations, arguing that no liability for damages could be established.

The case took a turn when a police investigation found that the allegations of a relationship with a minor had been fabricated. Voice recordings and KakaoTalk messages that had formed the basis of the claims were found to have been doctored. Kim Se-ui, head of the YouTube channel Garosero Research Institute, which had raised the allegations, was subsequently indicted and is currently standing trial.

The central issue at trial was whether the controversy constituted a breach of the dignity-maintenance obligations stipulated in the advertising contract. Kim's side argued that unverified allegations and speculative media reports alone could not amount to a contract violation, but the court found partial liability.

This ruling differs in character from outcomes in other related cases. Kim is also in litigation with Cuckoo Electronics, Trendmaker, Classys, Eider and Mido, among others, with the total amount in dispute reportedly reaching 10 billion won ($7.51 million). In an earlier case, a court dismissed in full a 570 million won claim by watch brand Mido against Goldmedalist for the return of a signing fee. In the Eider case, a court-recommended settlement reduced a 2.5 billion won damages claim to the return of roughly 400 million won in remaining modeling fees.

With rulings diverging across cases, observers expect higher courts to ultimately determine the extent of Kim's liability.

Adding further complexity, Kim has filed a 30 billion won damages suit against Kim Se-ui, alleging financial losses from the spread of false information — meaning who ultimately bears responsibility remains an open question.