The Debt and Legal Struggles of Late Actress Kim Sae-ron
The late actress Kim Sae-ron had an outstanding debt of approximately 700 million KRW to her former agency, Gold Medalist, at the time of her passing.
This debt arose after she was involved in a DUI controversy in May 2022, which led to her being dropped from various advertisements and dramas.
Kim Sae-ron was required to pay a penalty and compensation of 1.114 billion KRW to Keds, her advertising sponsor, and Studio N, the production company of the drama Bloodhounds. She managed to pay 300 million KRW from her personal assets, but still had 700 million KRW in outstanding debt.
Initially, Studio N had reportedly demanded 7 billion KRW in penalties, but after negotiations, Kim was able to reduce the amount to 1.114 billion KRW. To cover the remaining 700 million KRW, she borrowed from Gold Medalist. However, with her broadcasting activities halted, she struggled to repay the debt and received two official notices from her agency in March 2024.
Gold Medalist stated that they sent the notices due to concerns about potential breach of duty. However, Kim’s family claims that she was under extreme pressure from these legal actions, arguing that there was no need to send such notices if it were merely a formality.
According to the Financial Supervisory Service’s electronic disclosure system on March 18, Gold Medalist wrote off Kim Sae-ron’s 700 million KRW debt at the end of 2023. A bad debt write-off typically signifies that a creditor does not intend to demand repayment. However, Gold Medalist issued legal notices to Kim three months after writing off the debt, which raised concerns over the procedure's legitimacy. Typically, creditors first send legal notices and, if there is no response, proceed with the write-off, but in this case, the order was reversed. Kim’s family believes this was a tactic to pressure her.
After receiving the first notice, Kim Sae-ron reportedly sent an SOS message to Gold Medalist’s co-founder, actor Kim Soo-hyun, but did not receive a response. She then uploaded a photo with Kim Soo-hyun on her social media, which led to the agency sending a second notice. This notice demanded a precise repayment plan, prohibited her from directly contacting Kim Soo-hyun or other agency-affiliated actors, and warned that posting such photos could cause legal issues with broadcasting and OTT platforms.
Gold Medalist defended their actions by stating that they needed to determine how to handle Kim’s debt during their early 2024 financial audit. They argued that writing off the debt without any collection efforts could be seen as a breach of fiduciary duty. They claimed the legal notices were necessary to establish that the debt was still recognized and not entirely abandoned.
Industry Standards and Unfair Burden on Kim Sae-ron
Questions have arisen regarding why Kim Sae-ron had to shoulder the full 1.114 billion KRW penalty. Typically, in the entertainment industry, when a contract breach leads to penalties, the agency initially covers the damages and later seeks partial reimbursement from the artist. Since agencies share profits with their artists, they also tend to share the risks.
For example, when actor Ji Soo was dropped from a drama due to school violence allegations in 2021, his agency, KeyEast, paid the penalties. The production company, Victory Contents, later sued KeyEast for 3 billion KRW, and in 2024, a court ruled in favor of Victory Contents, ordering KeyEast to pay 1.42 billion KRW plus interest.
Similarly, when actor Bae Sung-woo was involved in a DUI scandal in 2020, his agency, Artist Company, took joint responsibility. Actor Jung Woo-sung, who was a company executive, stepped in to fill Bae’s role in the affected drama, while fellow executive Lee Jung-jae also made a cameo appearance to mitigate the situation.
Kim Sae-ron’s legal representative, attorney Bu Ji-seok, argued that Kim was unfairly burdened with the entire penalty and even the damages at the time of her DUI incident were arbitrarily determined. He pointed out that, in cases like restaurant damage, the actual financial loss should be calculated case by case. He also claimed that Kim had attempted to negotiate the compensation amount, but Gold Medalist prevented her from doing so.
The family further speculated that the contract between Kim and Gold Medalist was structured unfairly, possibly requiring her to bear all penalty costs in the event of a dispute. However, they admitted they had not directly reviewed the contract but criticized the potential unfair terms.
Suzy’s Controversial Past Comments Resurface
Meanwhile, a past statement by actress Suzy has resurfaced, sparking controversy. In an episode of SBS’s Go Show in 2012, Suzy recounted how, as a middle school student, she was approached by an adult man who followed her to her house. To deter him, she showed him her school uniform. While this was initially perceived as an amusing anecdote, it is now being reconsidered in a more unsettling light.
Netizens have drawn parallels between Suzy’s story and the controversy surrounding Kim Soo-hyun, who has been accused of engaging in a relationship with Kim Sae-ron when she was a minor. While Kim Soo-hyun has denied all allegations, the public remains skeptical, demanding more transparency. The coincidental resurfacing of Suzy’s story has only fueled speculation.
The Fallout and Future Implications
Kim Soo-hyun’s ongoing controversy has also impacted the entertainment industry, with broadcasters and advertisers closely monitoring the situation. Past cases have shown that celebrities involved in scandals often face severe career consequences, including contract terminations.
Suzy, though not directly involved in the current controversy, has found herself in the media spotlight due to her past close relationship with Kim Soo-hyun. Her ongoing success in film and television is now shadowed by the resurfacing of this old anecdote, putting her in an uncomfortable position.
The truth behind Kim Sae-ron’s case and the allegations involving Kim Soo-hyun remain unresolved. While her family is considering digital forensic investigations to retrieve past communication records, Kim Soo-hyun’s legal team has dismissed the accusations as baseless. This ongoing dispute has highlighted deeper concerns about contractual fairness in the entertainment industry and the handling of penalties for young actors.
Regardless of how the case unfolds, it has sparked broader discussions about minor protection in the entertainment industry and the responsibilities of management agencies in supporting their artists.
The legal battle over Kim Sae-ron’s unpaid debts and the resurfacing of related controversies continue to evolve, leaving the industry and the public eagerly awaiting further developments.
The late actress Kim Sae-ron had an outstanding debt of approximately 700 million KRW to her former agency, Gold Medalist, at the time of her passing.
This debt arose after she was involved in a DUI controversy in May 2022, which led to her being dropped from various advertisements and dramas.
Kim Sae-ron was required to pay a penalty and compensation of 1.114 billion KRW to Keds, her advertising sponsor, and Studio N, the production company of the drama Bloodhounds. She managed to pay 300 million KRW from her personal assets, but still had 700 million KRW in outstanding debt.
Initially, Studio N had reportedly demanded 7 billion KRW in penalties, but after negotiations, Kim was able to reduce the amount to 1.114 billion KRW. To cover the remaining 700 million KRW, she borrowed from Gold Medalist. However, with her broadcasting activities halted, she struggled to repay the debt and received two official notices from her agency in March 2024.
Gold Medalist stated that they sent the notices due to concerns about potential breach of duty. However, Kim’s family claims that she was under extreme pressure from these legal actions, arguing that there was no need to send such notices if it were merely a formality.
According to the Financial Supervisory Service’s electronic disclosure system on March 18, Gold Medalist wrote off Kim Sae-ron’s 700 million KRW debt at the end of 2023. A bad debt write-off typically signifies that a creditor does not intend to demand repayment. However, Gold Medalist issued legal notices to Kim three months after writing off the debt, which raised concerns over the procedure's legitimacy. Typically, creditors first send legal notices and, if there is no response, proceed with the write-off, but in this case, the order was reversed. Kim’s family believes this was a tactic to pressure her.
After receiving the first notice, Kim Sae-ron reportedly sent an SOS message to Gold Medalist’s co-founder, actor Kim Soo-hyun, but did not receive a response. She then uploaded a photo with Kim Soo-hyun on her social media, which led to the agency sending a second notice. This notice demanded a precise repayment plan, prohibited her from directly contacting Kim Soo-hyun or other agency-affiliated actors, and warned that posting such photos could cause legal issues with broadcasting and OTT platforms.
Gold Medalist defended their actions by stating that they needed to determine how to handle Kim’s debt during their early 2024 financial audit. They argued that writing off the debt without any collection efforts could be seen as a breach of fiduciary duty. They claimed the legal notices were necessary to establish that the debt was still recognized and not entirely abandoned.
Industry Standards and Unfair Burden on Kim Sae-ron
Questions have arisen regarding why Kim Sae-ron had to shoulder the full 1.114 billion KRW penalty. Typically, in the entertainment industry, when a contract breach leads to penalties, the agency initially covers the damages and later seeks partial reimbursement from the artist. Since agencies share profits with their artists, they also tend to share the risks.
For example, when actor Ji Soo was dropped from a drama due to school violence allegations in 2021, his agency, KeyEast, paid the penalties. The production company, Victory Contents, later sued KeyEast for 3 billion KRW, and in 2024, a court ruled in favor of Victory Contents, ordering KeyEast to pay 1.42 billion KRW plus interest.
Similarly, when actor Bae Sung-woo was involved in a DUI scandal in 2020, his agency, Artist Company, took joint responsibility. Actor Jung Woo-sung, who was a company executive, stepped in to fill Bae’s role in the affected drama, while fellow executive Lee Jung-jae also made a cameo appearance to mitigate the situation.
Kim Sae-ron’s legal representative, attorney Bu Ji-seok, argued that Kim was unfairly burdened with the entire penalty and even the damages at the time of her DUI incident were arbitrarily determined. He pointed out that, in cases like restaurant damage, the actual financial loss should be calculated case by case. He also claimed that Kim had attempted to negotiate the compensation amount, but Gold Medalist prevented her from doing so.
The family further speculated that the contract between Kim and Gold Medalist was structured unfairly, possibly requiring her to bear all penalty costs in the event of a dispute. However, they admitted they had not directly reviewed the contract but criticized the potential unfair terms.
Suzy’s Controversial Past Comments Resurface
Meanwhile, a past statement by actress Suzy has resurfaced, sparking controversy. In an episode of SBS’s Go Show in 2012, Suzy recounted how, as a middle school student, she was approached by an adult man who followed her to her house. To deter him, she showed him her school uniform. While this was initially perceived as an amusing anecdote, it is now being reconsidered in a more unsettling light.
Netizens have drawn parallels between Suzy’s story and the controversy surrounding Kim Soo-hyun, who has been accused of engaging in a relationship with Kim Sae-ron when she was a minor. While Kim Soo-hyun has denied all allegations, the public remains skeptical, demanding more transparency. The coincidental resurfacing of Suzy’s story has only fueled speculation.
The Fallout and Future Implications
Kim Soo-hyun’s ongoing controversy has also impacted the entertainment industry, with broadcasters and advertisers closely monitoring the situation. Past cases have shown that celebrities involved in scandals often face severe career consequences, including contract terminations.
Suzy, though not directly involved in the current controversy, has found herself in the media spotlight due to her past close relationship with Kim Soo-hyun. Her ongoing success in film and television is now shadowed by the resurfacing of this old anecdote, putting her in an uncomfortable position.
The truth behind Kim Sae-ron’s case and the allegations involving Kim Soo-hyun remain unresolved. While her family is considering digital forensic investigations to retrieve past communication records, Kim Soo-hyun’s legal team has dismissed the accusations as baseless. This ongoing dispute has highlighted deeper concerns about contractual fairness in the entertainment industry and the handling of penalties for young actors.
Regardless of how the case unfolds, it has sparked broader discussions about minor protection in the entertainment industry and the responsibilities of management agencies in supporting their artists.
The legal battle over Kim Sae-ron’s unpaid debts and the resurfacing of related controversies continue to evolve, leaving the industry and the public eagerly awaiting further developments.
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