South Korean Star Kim Soo-hyun Loses Apartment Over Unpaid Penalty Amidst Controversy

Renowned South Korean actor Kim Soo-hyun has reportedly lost one of his luxury apartments in Seoul, valued at approximately $2.2 million (around 3 billion KRW), after failing to pay a penalty fee to a cosmetic and skincare company, Classys. This development comes amidst a complex web of legal disputes and public scrutiny surrounding the actor, stemming from allegations related to his purported relationship with the late actress Kim Sae-ron.

According to various Korean media outlets, Classys initiated legal action to seize one of Kim Soo-hyun’s three apartments located in the prestigious Galleria Foret complex. The company had an endorsement deal with the “Queen of Tears” star, which was reportedly terminated following the controversy ignited by a YouTube channel, GaroSero Institute, and its operator, Kim Se-ui. The channel made unverified claims about Kim Soo-hyun’s alleged relationship with Kim Sae-ron when she was a minor, leading to significant backlash and commercial losses for the actor.

Classys filed the seizure request on May 8, and the Seoul Eastern Court approved it on May 20, 2025. Kim Soo-hyun had acquired the three luxury units in the Galleria Foret complex between 2013 and 2014. The penalty fee demanded by Classys is understood to be a consequence of the contract’s termination due to the negative publicity surrounding the allegations. Reports suggest that two more advertisers may pursue similar legal measures.

Kim Soo-hyun’s legal team has vehemently contested the apartment seizure, labeling it as “unjustified.” They argue that the actor is a victim of false and malicious allegations spread by GaroSero Institute. His legal representatives have stated that while advertisers have indeed faced financial setbacks due to the controversy, the ultimate responsibility lies with GaroSero Institute and Kim Se-ui for disseminating fabricated claims. They expressed regret that Kim Soo-hyun, as a victim, is facing “secondary damage” and that the “arrows are being pointed toward the victim simply because contractual obligations were not met.”

Interestingly, this incident follows closely on the heels of a significant win for Kim Soo-hyun. Just a day prior, his agency, Gold Medalist, secured a court order for the provisional seizure of two apartments belonging to YouTuber Kim Se-ui. This move is part of an ongoing defamation lawsuit filed by Kim Soo-hyun, seeking substantial damages against Kim Se-ui and GaroSero Institute for spreading false information that has significantly impacted the actor’s reputation and career.

The legal teams involved anticipate that the ongoing investigations into GaroSero Institute’s claims will eventually reveal the truth and clarify who is responsible for the financial losses incurred by advertisers. They are committed to proving the falsity of the allegations and restoring Kim Soo-hyun’s honor.

This evolving situation highlights the intricate challenges faced by public figures in the digital age, where unverified claims can have severe personal and financial repercussions. The entertainment industry in South Korea is watching closely as these high-profile legal battles unfold.