The CEO and internal director of a ginseng product company who called hallyu star Bae Yong-joon “crazy for money” were slapped with a fine of 30 million won ($26,000) for defamation, Sunday.
The Seoul Central District Court said the two were responsible for maliciously defaming a well-known celebrity to gain public attention and influence the court decision on then-ongoing lawsuits with Bae’s former food brand Goshire.
(Bae Yong-joon's Instagram)
The court said, “Although Bae was not the person directly involved in the lawsuit between the parties, he was still held in contempt, which insulted his person and harmed his image in the public eye.”
The unusually hefty fine for a defamation case in Korea is due to Bae’s special position as a public figure, according to the court.
“Bae suffered public distrust for a prolonged period, which hindered his activities and caused him severe psychological distress.”
The ginseng company in 2009 signed contracts with Bae Yong-joon to borrow the name of his Japan-launched food brand Goshire in exporting their ginseng products to Japan.
It gave 2.3 billion won advance payment out of the total 5 billion won down payment for which Goshire promised annual sales revenue of 10 billion won.
However, sales flopped, and the ginseng company demanded Goshire return 300 million won, claiming the latter made unfair profits with its belatedly earned trademark rights in 2011.
On the day of the court trial for the suit, the ginseng company employees and shareholders demonstrated in front of the courthouse with signs that read “Bae Yong-joon, Crazy for money” and “National wealth drainer Bae Yong-joon.”
At the time, Bae had already forsaken his shares at Goshire and was no longer involved in the legal proceedings.
The ginseng company lost the case, with the court ruling that the two parties had inked the contract under mutual agreement of Goshire’s brand value, and not because of Goshire’s trademark rights.
The court decided that Goshire’s failure to carry out the pitched sales revenue was not a purposeful deception based on an intentionally implausible plan.
The ginseng company had also filed suit against Bae for a scam in 2014, for which Bae was also acquitted.
By Lim Jeong-yeo (
kaylalim@heraldcorp.com)