Every scandal has serious consequences for stars, the most obvious and immediate being the rejection of fans and brands, like what Negav faced when his scandal broke out recently. In neighboring markets like China and Korea, the punishment for scandalous stars, especially in the advertising field, is even more intense.

The higher the fee, the bigger the penalty

According to Fastercapital , using celebrity influence to promote products and increase sales is a double-edged sword. On the one hand, it can attract fans of those celebrities, but when controversies involving stars break out, brands are often the first to be affected. Consumers can lose trust and respect for the brand, even boycotting the brand’s products or services.

Meanwhile, Segye newspaper commented that today’s consumers are not easy-going. When a celebrity gets into a scandal and then appears in an advertisement, consumers will quickly go to the social media platforms or the brand’s website to complain. They openly express their dislike of seeing the star appear. Therefore, advertising brands will be more sensitive than anyone else when a celebrity scandal breaks out. And the most common actions at that time will be to cancel the contract, remove billboards, banners and change the home screen…

Yoo Ah In ruined his career because of scandal. Photo: News1.

SBS said that one of the most important measures of a star’s popularity is advertising. Yoo Ah In, the most popular actor in his 30s, is a top model in this field. The actor can receive 800 million won to 1 billion won per advertisement contract in a year. Before the drug scandal broke out, Yoo Ah In modeled for about 10 brands, including fashion, food, beauty, pharmaceutical and outdoor companies. He also modeled for a Chinese clothing brand in addition to Korea.

After the drug scandal broke out, brands were quick to remove Yoo Ah In. Ads featuring the “film king” were taken down or replaced, SBS reported.

A typical advertising contract usually includes a clause that requires the celebrity to pay a fine if they do anything that damages the brand’s image or reputation. Each contract stipulates different actions and fines. However, DongA reported that the more valuable the star is in advertising, the more fines they will have to pay if they get involved in a scandal. SBS estimates that Yoo Ah In’s advertising fine alone will be approximately 8 billion won. However, because the contract period and terms of each company’s contract are different, the fine may increase or decrease.

It is expected that a lawsuit will be filed against Yoo Ah In in the future. The actor may be asked to pay advertising fines. However, as the police investigation and legal punishment against Yoo Ah In have not yet been completed, this matter will take more time.

Han So Hee’s love affair controversy earlier this year was not as serious as Yoo Ah In’s. However, the incident was enough to turn her away from some brands. That shows how controversy can affect, even destroy, a star in Korea. The same thing happened to many other stars, such as Soojin, Lee Na Eun, Seo Ye Ji, T-ara, Lee Soo Geun…

Seo Ye Ji was boycotted by brands and the public after the scandal. Photo: YTN.

After the success of Crazy For You, which aired in 2020, Seo Ye Ji became an advertising model in all fields from masks, makeup, health foods, fashion, to jewelry, games… Seo Ye Ji’s annual modeling salary is estimated to be around 500 million to 1 billion won. However, the controversy over Seo Ye Ji’s manipulation of her boyfriend broke out, causing many brands to remove her images. According to MBN , Seo Ye Ji’s fine is estimated by industry insiders to be around 2-3 billion won.

Paying a heavy price for scandal

In any market other than Korea, it is inevitable that celebrities will be “punished” after controversies, especially in the advertising industry. In connection with the investigation into the multi-level marketing corporation The iCon Group that is causing a stir in Thailand, famous MC and actor Kan Kantathavorn had many of his assets confiscated. Notably, his management company and an electronics brand also announced the termination of his contract. Kan Kantathavorn and 17 others, including actress Min Pechaya, were arrested on October 16 and are currently in custody.

Kanye West lost his billionaire status in late 2022 after Adidas ended their partnership over a series of controversial statements he made. The brand said it had “zero tolerance for anti-Semitism and any other form of hate speech” and called Kanye West’s comments “unacceptable, hateful and dangerous.”

Adidas and Kanye collaborated on the Adidas Yeezy line, known for its expensive sneakers and clothing. According to The New York Times , the deal was estimated to be worth billions of dollars and was hugely profitable for both parties. In fact, Adidas said the decision to end its partnership with the rapper resulted in a $246 million loss in sales in the fourth quarter of 2022.

Trinh Sang before the scandal. Photo: ETtoday.

In the Chinese market, the punishment is even more severe. Because of the surrogacy scandal, Zheng Shuang was not only rejected by brands but also stripped of her awards, according to HK01 . After Prada, Aussie, and other brands announced that they would end their cooperation with Zheng Shuang, the Huading Awards organizers also announced that they would revoke the actress’s award for Best Actress in a Modern and Contemporary Chinese TV Series at the 19th awards ceremony and the Best Actress category at the 13th awards ceremony. Zheng Shuang’s award certificates and trophies were all revoked and canceled.

At that time, a representative of the award’s organizing committee said: “The incident caused Zheng Shuang’s character to collapse immediately. She brought the consequences upon herself and that went against our original intention when awarding the award. Everyone was shocked by the news that she had a surrogate mother. This is an act of trampling on civil rights and corrupting human morality. This cannot be tolerated.