Brands associated with Korean actor Kim Soo-hyun face boycott calls: Should they cave?

Over the past week, brands have been pausing endorsements of Korean actor Kim Soo-hyun (Kim) after he came under fire for allegedly dating the now deceased actress Kim Sae-ron when she was a minor, and for demanding a repayment of KRW700 milliion for damages he covered on her behalf.

The incident was first revealed on 10 March, by the YouTube channel Hoverlab, claiming the two had been dating for six years, starting when Kim Sae-ron was 15. The channel then issued a photo showing the actor kissing Kim Sae-ron on the cheek, sparking heated discussions online.  

Soon after the claim was made, Kim's agency, Gold Medalist, denied the accusations, calling them "completely false" and warning of the "strongest possible legal action." The company also addressed the accusations today, stating, “The claims that Kim was in a relationship with Kim Sae Ron during her underage years are untrue. The photographs shared by Garo Sero Research Institute—purportedly proving their relationship—were taken in 2020 during their time as consenting adults.”

Additionally, it denied allegations that Kim pressured Kim Sae Ron to repay KRW700 million (approximately US$481,300) in debt, asserting that all financial arrangements were dealt with directly between Gold Medalist and Kim Sae Ron.

Despite this, netizens are urging MBC's variety show, Good Day, hosted by K-pop icon G-Dragon, to remove him from the music show's lineup. Netizens are also urging brands associated with Kim to respond amidst the controversy. According to media intelligence company CARMA, netizens have also campaigned for boycotts of brands associated with Kim. It added that there are a total of 502.5K mentions regarding Kim worldwide since the controversy, with sentiments of conversations being 0.8% positive and 42.5% negative.

How have brands reacted to date?

As of  10 March, Korean Cosmetic brand Dinto CEO Ahn Ji Hye said, “For now, I plan to trust and wait. Rather than being swayed by uncertain claims, I want to focus on what I can and must do.” 

He later added that Dinto’s employees have since been double-checking the facts and are discussing their response. Meanwhile, all scheduled events involving Kim as the brand’s ambassador have been paused, according to Allkpop.  

Similarly, on 12 March, Aekyung Group reportedly hid a 2015 Jeju Air advertisement featuring Kim on social platforms, according to Allkpop. Other brands such as K2, Shabu All Day and Homeplus’ official websites and social platforms also did the same, according to Korea Times. 

CARMA also added that Kim has lost a significant number of Instagram followers, with several brands having deleted Kim's appearances from their websites and social media, according to CARMA. Netizens are circulating a list of over 18 brands that were affiliated with Kim. 

MARKETING-INTERACTIVE has reached out to Gold Medalist for a statement.

Kim’s status in the Korean entertainment industry 

In fact, Kim is one of the biggest names in the world of Korean drama, with hit shows such as Dream High (2011-12), Moon Embracing the Sun (2012), My Love from the Star (2013-14) as well as films such as The Thieves (2012) and Secretly, Greatly (2013). 

According to Hankook Ilbo, the sister publication of The Korea Times, Kim earned KRW 300 million (approximately US$217,119) per episode for his role in Queen of Tears last year, accumulating a total income of KRW 5 billion (around US$3.7 million). Kim was also said to earn around US$ 423,000 daily per episode for the hit show, making him the highest-paid K-drama actor to date.  

While the jury is out on whether Kim really dated the actress, the shocking accusations have undoubtedly damaged Kim’s image and reputation. Kimberley Olsen, co-founder of Yatta Workshop Singapore said Kim needs to do more than just issue legal threats and stay silent. 

“Focusing only on denial without acknowledging the emotional weight of the situation could make him seem out of touch. This isn’t just a PR crisis, it involves grief, loss, and serious accusations. Actors in Korea often step away from the public eye until backlash dies down, but in this case, prolonged silence could do more harm," she said. 

Given the circumstances of Kim Sae-ron’s passing, the public may expect a response that shows some understanding of the situation, she added. “If his agency sticks to the legal route, a carefully worded statement that expresses compassion while addressing misinformation could help shift public perception.” 

Olsen added that sometimes celebrities in Korea quietly take on charitable efforts to rebuild their image. If done sincerely, supporting mental health initiatives or programmes for young actors could show awareness of the deeper issues at play, helping restore his reputation without seeming performative, she added. 

Meanwhile, David Ko, managing director, RFI Asia, said that the actor should maintain consistent, factual messaging through his agency, avoiding contradictory statements that could damage credibility. 

“He should follow through with the announced legal action against accusers could help establish facts and potentially clear his name if the allegations are proven false; as well as avoiding hasty public statements while the situation develops, as emotional reactions could backfire,” he added. 

Is cutting ties with the celebrity the only way? 

While it is understandable for brands to distance from their celebrity ambassadors amidst controversies, it might not always be the best route. But this is also dependent on the severity and allegations involved.    

Last November, K-pop star G-Dragon copped flak for allegedly using illegal drugs. He then denied the accusations in a statement released by his attorney to South Korean media outlets. Amidst the situation the brands he worked with maintained their ties and ultimately the star was cleared of charges in December. Following the incident, G-Dragon said he would set up a public foundation dedicated to fighting and eradicating drug abuse.

In Kim’s case, Bastian Wong, founder and CEO, Flare Communications said, that his associated brands can host joint charitable initiatives that focus on mental health awareness or support for victims and enhance their brand image while still associating with Kim. 

“The brands should also keep a close eye on how the situation develops and maintaining open communication with Kim's agency could help them make informed decisions in the future, in advanced communication is important,” she added. 

The best thing that a brand can do is not to cut ties too quickly, and work with Kim’s agency to keep updating new facts, according to Marianne Admardatine, CEO of Burson Indonesia. “During the waiting period, all assumption theories are made and even when the clarification comes, the damage is done. So like any issues crisis, he should engage the audience with all information and share the process of fact findings regularly.” 

Brands that show loyalty towards their ambassadors in difficult times will gain higher brand love, she added.

“So, fact-check first and give the benefit of the doubt before cancelling too soon. This can help shift the cancel culture towards a more positive and mutually beneficial, safe and not to mention respectful relationship.” 

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