A damages lawsuit filed by Cuckoo Electronics against actor Kim Su-hyeon, who is embroiled in a privacy controversy, has begun.
The Seoul Central District Court Civil Division 25 (Presiding Judge Gwon Gi-man) on the 14th held the first hearing in a damages lawsuit worth about 2 billion won filed by Cuckoo Electronics, rental specialist CUCKOO Homesys, and CUCKOO International Berhad, the Malaysia subsidiary of CUCKOO Homesys, against Kim Su-hyeon and her agency Goldmedalist.
Kim Su-hyeon has served as an exclusive model for Cuckoo Electronics for 10 years. However, as public opinion turned negative after allegations emerged that the late actor Kim Sae-ron dated Kim when she was a minor, Cuckoo Electronics filed a civil suit.
The court asked the plaintiffs to specify the grounds for termination of the contract. The court said, "The plaintiffs (Cuckoo Electronics) cite a breakdown of trust as the reason for termination with respect to the grounds, but clarify whether the contract can be terminated simply because the relationship of trust has broken down, or whether the trust broke down due to the other party's fault."
Regarding the scope of damages, the court said, "The scope of damages differs depending on whether termination is based on a breakdown of trust or on fault," and asked them to present a specific position. The court added, "Saying that 'a controversy arose and it is impossible for the company to advertise' alone is not a basis to terminate the contract," and ordered, "Organize your arguments to match the grounds for termination."
On the privacy controversy as well, the court said, "It must be factual (for it to constitute grounds for termination)," and asked the plaintiffs whether they would proceed with the civil suit after watching the outcome of the related investigation.
Cuckoo Electronics said, "The situation in which all advertisers canceled ads because the image of the actor named Kim Su-hyeon fell did not occur simply due to the Garosero Research Institute's raising of allegations," adding, "Because we are also asserting damage to the relationship of trust as grounds for termination, we do not believe the civil suit can proceed only after the related criminal case is concluded."
Kim Su-hyeon's side said, "It is unclear what specific act is alleged to have violated the obligations of the contract with Cuckoo Electronics," adding, "It also seems you are specifying as a breach the claim that Kim Su-hyeon's side responded inadequately after the allegations were raised, so please specify which parts were an inadequate response."
The court scheduled one more hearing for Jan. 16 next year to hear arguments from both sides.