Actor Kim Soo Hyun is facing allegations regarding a past relationship with the late Kim Sae Ron during her minor years, as well as accusations of pressuring her over debt repayment. Amid this controversy, industry experts speculate that Disney+ may pursue a hefty breach-of-contract lawsuit against him.

Kim Soo Hyun recently wrapped up filming for ‘Knock-Off’ Season 1 and was preparing for Season 2 alongside co-star Kim Ji Won. The tvN drama ‘Queen of Tears’, which also features Kim Soo Hyun, has further boosted his visibility. With an estimated production budget of 60 billion KRW (approximately 41 million USD), ‘Knock-Off’ is set to release Season 1 in the first half of the year, followed by Season 2 in the latter half.

However, as allegations of Kim Soo Hyun’s past relationship with Kim Sae Ron resurface—alongside claims that he pressured her regarding debts incurred from her DUI incident—‘Knock-Off’ now faces potential delays.

Initially, the ‘Knock-Off’ production team had stated on March 12th that filming for Season 2 would proceed as planned, following Kim Soo Hyun’s denial of the allegations. But the YouTube channel Garosero Research Institute (HOVERLABS) intensified its attacks, releasing personal photos of Kim Soo Hyun and Kim Sae Ron. This pressure led his agency, Gold Medalist, to revise its statement on March 14th, admitting that their relationship began after she reached adulthood.

On March 17th, Kim Sae Ron’s family further complicated matters by revealing excerpts from her personal diary, allegedly documenting their relationship from as early as 2015, when she was still a minor. A resurfaced 2017 fan photo of the two together near Kim Soo Hyun’s residence has also fueled suspicions that he provided false statements.

As the controversy deepens, speculation grows that Disney+ might take legal action against Kim Soo Hyun for violating the “morality clause” in his contract. Entertainment contracts commonly include provisions requiring celebrities to maintain a positive public image, as their reputation directly affects production and brand value.

With ‘Knock-Off’ carrying a budget of 60 billion KRW, Kim Soo Hyun’s per-episode fee is estimated between 500 million to 800 million KRW, totaling over 5 billion KRW for the eight-episode series. If Disney+ pursues damages for production delays or a failed release, he could be liable for compensation beyond his appearance fee.

Considering that breach-of-contract penalties can reach 20-30% of a production’s budget, Disney+ could potentially demand hundreds of billions of KRW in damages.

This situation draws comparisons to Kevin Spacey, who faced a similar legal battle after being dropped from Netflix’s ‘House of Cards’ due to sexual misconduct allegations. Netflix sued him for damages, and the U.S. courts ordered Spacey to pay $30 million. This financial burden forced him to liquidate his assets, and he later admitted in a 2018 interview that he was on the verge of bankruptcy.

An industry insider commented, “Like Netflix, Disney+ is a global OTT powerhouse. If they determine that Kim Soo Hyun’s scandal has caused financial damage, they are likely to seek legal remedies. His response in the coming days will be a critical factor in determining the outcome.”

With Kim Soo Hyun’s reputation and career on the line, all eyes are on his next move—and on how Disney+ will choose to respond.

SEE ALSO: Kim Sae Ron's bereaved family releases an AI-generated memorial video of the late actress