According to reports, actor Kim Soo Hyun's agency, Gold Medalist, has recently landed itself in the river due to the scale of severe financial problems linking to a public controversy.
As per Newsen, sources indicate that the company is running low on funds, raising concerns about its future.
The troubles for the Gold Medalist intensified following allegations surrounding Kim Soo Hyun's relationship with the late actress Kim Sae Ron, who was a minor at the time.
The agency has also been accused of attempting to extort money from her after her DUI accident.
In response to these allegations, Kim Soo Hyun held an emotional press conference on March 31, where he denied the claims.
Reports suggest that Gold Medalist has suspended contracts with external cleaning services in an effort to cut costs.
An industry expert noted that the agency previously maintained a financial reserve of between ₩2.00 billion KRW (approximately $1.36 million USD) and ₩3.00 billion KRW (around $2.04 million USD).
However, the agency has since lost more than 20 endorsement deals, and several brands have pulled adverts featuring the actor.
While most companies have not issued penalties, the financial strain from refunded fees, canceled events, and ongoing operational costs has severely impacted Gold Medalist's resources.
Insiders indicate that the agency needs to secure approximately ₩6.00 billion KRW (about $4.07 million USD) to cover damages related to the situation.
"The decision to halt contracts with cleaning service providers raises concerns about potential layoffs," said a financial industry insider. "
If they are taking such measures, it indicates the gravity of their financial situation."
During his press conference, Kim Soo Hyun reflected on the impact of the controversy, stating,
"I wondered how things might have been if I held a press conference at the beginning of it all to clarify everything. Then, I would not have caused so much suffering to the fans who love and support me and the staff at my management company who worked so hard leading up to this conference."
In a further twist, Kim Soo Hyun recently filed a ₩12.0 billion KRW (approximately $8.15 million USD) damages lawsuit against Kim Sae Ron's family and the GaroSero Research Institute.
Legal experts suggest that a key issue will be whether Gold Medalist and Kim Soo Hyun can demonstrate that their financial problems were directly caused by these parties.
