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On March 27, 2025, Pannchoa reported that Kim Soo-hyun could have to pay over $123 million in penalty fees if Disney chooses to cancel the production of his upcoming series Knock Off.
Production on Knock Off, the upcoming Disney series starring Kim Soo-hyun, which is an action thriller, has been postponed indefinitely amid controversy regarding his prior relationship with the late actress, Kim Sae-ron.
The controversy began after a month of Kim Sae-ron's passing in February 2025. In the aftermath of her death, rumors re-emerged that the two actors were romantically involved while Kim Sae-ron was still a minor.
A press conference held by Kim Sae-ron's family in March 2025, represented by lawyer Mr. Bu Ji-seok, revealed alleged private text messages between the two actors from June 2016.
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This was one month before Kim Sae-ron's 16th birthday (and Kim Soo-hyun's 28th) and contained suggestive messages that the family interpreted as evidence of a romantic relationship or a possible grooming.
Koreaboo translated the contents of the messages to state flirtatious conversations and questions regarding when they could sleep together. Bu Ji-seok argued that the conversation points toward a s*xual relationship and asked Kim Soo-hyun to apologize to the late actress's family.
Kim Soo-hyun's faces new allegations amid ongoing controversy regarding late Kim Sae-ron
Gold Medalist, Kim Soo-hyun's agency, continuously denied the relationship, maintaining that the relationship only began in the summertime of 2019 and ended by the autumn of 2020, when Kim Sae-ron was of legal age.
The agency has since escalated matters, reportedly suing Kim Sae-ron's family and others involved for the dissemination of false information regarding the timeline of the relationship.
Meanwhile, Kim Sae-ron's ex-boyfriend (identified as "Mr. K") came out publicly to dispute the allegations from the family and suggested that her struggles stemmed from family negligence rather than involvement with Kim Soo-hyun.
Times Entertainment reported that Mr. K also purportedly provided texts from Kim Sae-ron and a man she allegedly married in secret.
The snag of this history is reportedly back on Disney's radar regarding the production of Knock Off. Sources close to the production suggest that Disney is deeply concerned about the potential negative impact of this renewed controversy on the series and the broader Disney brand.
The reported $123 million fine that Kim Soo-hyun might face is speculated to be linked to a potential breach of a conduct clause, likely a "morality clause," within his contract for Knock Off. Such clauses are standard practice in the entertainment industry, particularly in contracts involving high-profile talent for major productions.
These clauses typically grant the production company or platform the right to terminate the agreement or impose financial penalties if the actor engages in behavior deemed scandalous, unethical, or likely to bring them or the project into public disrepute.
The specific wording of these clauses can vary, but they are designed to protect the significant financial investments and brand image of the involved parties.
Disney representatives have declined to comment officially on the reported production halt or the alleged fine.
However, unconfirmed statements from sources close to the production indicate that Disney is treating the situation with utmost seriousness and is currently evaluating all available options to protect its significant investment in the series.
