Hellbound actor Yoo Ah-in might have to pay over 10 billion KRW in ad penalties, South Korean outlets report

Actor Yoo Ah-in, who is currently being investigated for the use of four illegal drugs, might have to pay over 10 billion KRW (approximately 7.71 million USD) in penalties for breaching advertising contracts.

On South Korean news outlet YTN, lawyer Kim Sung-hoon explained how advertising contracts work and the possibility of potential penalties. As the 36-year-old actor has had his share of critically and commercially acclaimed hits, he has modeled for several brands.

As per the lawyer, the actor is “very likely” to pay 10 billion KRW as a penalty for causing controversy while being involved with brands.

Since a brand will have to stop using its content and suffer loss, usual contracts demand that the model pay “penalty equivalent to or more than the advertisement cost.” This also ensures that the company’s reputation remains unharmed.

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Yoo Ah-in’s drug scandal is reportedly leading brands to discontinue their contracts with him

Yoo Ah-in is highly famous for his hit works such as Burning, Secret Affair, #Alive, and most recently, Hellbound on Netflix. The 36-year-old had several other Netflix projects lined up, including a sequel to Hellbound. However, after his drug scandal made headlines, the OTT giant replaced him for the sequel and has delayed two other projects featuring him.

In February 2023, the National Forensic Service confirmed that Yoo Ah-in tested positive for marijuana and propofol. In early March, it was revealed that his tests contained traces of cocaine and ketamine. Although legal in some countries, marijuana is considered illegal in South Korea.

Meanwhile, MUSINSA (one of the biggest fashion e-commerce companies), NEPA (a luxury fashion company), I’m VITA (a health brand), and Ottogi (a major Korean food manufacturer) were reported to have cut ties with Yoo Ah-in recently.

A lawyer, Kim Sung-hoon, spoke to YTN about the possibility of the scandal affecting brands. The actor is reported to have modeled for over 10 organisations across food, fashion and other industries. The lawyer said, as translated by Koreaboo,

“It is very likely that Yoo Ah In will have to pay more than 10.0 billion KRW (about $7.71 million USD) in penalties for breach of contracts. However, we cannot rule out the possibility of reaching an agreement before a lawsuit.”

He explained the clause that companies usually add to their contracts to protect themselves.

“Usually, advertising contracts include a clause that requires performers and artists to pay a penalty equivalent to or more than the advertisement cost if they commit crimes that cause social controversy that stop the advertisements from running and ruin the company’s reputation.”

The lawyer added that negotiations can be a part of the discussions. However, reaching an agreement is key, otherwise, the brand can take Yoo Ah-in to court. He further stated:

“Depending on how far they are willing to come into agreement, a compensation agreement can be reached without a lawsuit. However, if they do not agree with one another, a lawsuit is expected.”

On March 28, Netflix stated that the release of two of his movies, The Match and Goodbye Earth (aka The Fool at the End of the World), were “temporarily postponed.”