Kim Soo-hyun, facing mounting allegations related to the late Kim Sae-ron, has announced plans to release an official statement next week. However, the fallout from the controversy has already led to significant commercial repercussions, with multiple brands distancing themselves from the actor.

Since March 10, Garo Sero Institute (GaSeYeon), a YouTube investigative channel, has amplified allegations made by Kim Sae-ron's family, claiming that Kim Soo-hyun was in a relationship with the late actress for six years, beginning in 2015 when she was a minor. The family also asserts that after Kim Sae-ron's 2022 DUI incident, she faced financial difficulties, yet Kim Soo-hyun and his agency, Gold Medalist, pressured her to repay 700 million KRW (approximately $520,000) that had been loaned to cover damages.

Kim Soo-hyun's agency strongly refuted the allegations, stating, "These claims are entirely false and defamatory. GaSeYeon has accused Kim Soo-hyun and our agency of conspiring with a YouTuber to harass the late Kim Sae-ron, of being in a relationship with her since she was 15, and of mishandling her DUI incident. These are malicious fabrications, and we are considering the strongest possible legal actions against GaSeYeon for spreading misinformation."

Despite this firm denial, GaSeYeon has continued to release content, including photos of Kim Soo-hyun and Kim Sae-ron appearing close, along with handwritten letters, increasing public pressure on the actor. Additionally, Kim Sae-ron's family has given interviews reiterating their claims.

In response to the escalating controversy, Gold Medalist announced plans to release a formal statement next week. "We will present clear evidence to refute these baseless rumors and clarify the truth," the agency said. "We deeply regret the prolonged distress this has caused and kindly ask for restraint in speculative reporting."

However, the backlash has already had a tangible impact on Kim Soo-hyun's commercial endorsements. Several brands, including beauty, dining, and health supplement companies, have begun removing his promotional materials from their official channels. Even advertisements from a decade ago have been made private, reflecting the advertising industry's cautious approach to the unfolding scandal.

Retail giant Homeplus, which recently reappointed Kim Soo-hyun as its brand ambassador for its 28th-anniversary campaign, has also taken steps to distance itself. Initially adopting a wait-and-see approach, the company has since removed Kim Soo-hyun's images from its app homepage and, as of March 13, has made his promotional videos private on YouTube. Homeplus, which is already facing financial difficulties and undergoing corporate restructuring, has reportedly been hit hard by the controversy.

Kim Soo-hyun's endorsement fees are estimated to range between 700 million and 1 billion KRW ($520,000 to $750,000) per year. If contract penalties are enforced, he could face financial liabilities of up to 20 billion KRW ($15 million), as most contracts include termination penalties amounting to two to three times the original contract value. The total financial impact could increase if additional penalties arise from his ongoing television and film projects.

Copyright © 2023 Kpop Reporter. All rights reserved. Do not reproduce without permission.