[Inside Chodong] How Companies Respond to Advertising Model Scandals
For companies aiming to promote their business and products by featuring the hottest celebrities as models, a ‘scandal’ is like a ticking time bomb that can explode anytime and in any way. While there may be room to manage dating rumors, when controversies such as infidelity, drunk driving, drug use, assault, or abuse of power arise, companies and brands have repeatedly experienced direct hits to their sales and image simply because they used that particular celebrity as their advertising model. Recently, revelations about celebrities’ pasts, such as school violence or leading bullying during their school days, have also frequently led to contract terminations, multi-million won penalty fees, and lawsuits for damages.
When actor Kim Seon-ho, whose popularity was soaring due to a hit drama, became embroiled in a personal life controversy involving his ex-girlfriend, distribution companies that had hired him as an advertising model quickly ‘cut ties’ for the same reason. Even before his real name was mentioned, advertisements featuring Kim Seon-ho on online homepages, YouTube, and corporate social media accounts were simultaneously switched to private or completely removed. Although the costs and time already spent on producing and airing the ads would be a loss borne by the advertiser companies, they chose the easiest and safest method to prevent further fallout.
However, the atmosphere softened as Kim Seon-ho apologized and the other party who revealed the personal details also deleted their posts, showing signs of mutual agreement. As additional testimonies from Kim Seon-ho’s acquaintances, text message evidence, and praise from colleagues about his character emerged, public opinion, which had been overwhelmingly critical, began to shift, prompting some companies to resume their advertisements.
The first to do so was mask manufacturer Mima Mask, which on the 28th of last month re-posted advertisements featuring Kim Seon-ho on its homepage, YouTube, and Instagram. Following them, Canon Korea, cosmetics company La Roche-Posay, health supplement company Food Bucket, clothing brand Edition, and 11st also made advertisements and photo shoots featuring Kim Seon-ho available on their websites.
Consumer reactions have been sharply divided. Among fans supporting Kim Seon-ho, messages of encouragement and comments expressing intent to use products from companies that resumed his advertisements have been pouring in. On the other hand, protests against these companies have arisen, with some members even posting withdrawal confirmations, signaling the emergence of boycott movements.
Companies find themselves in a difficult position with no easy way out. A representative from a food company said, “Since it concerns the personal life of the model, it’s not easy to make a judgment either way,” adding, “Public opinion has been changing by the minute from the initial revelation until now, so it’s hard to figure out how to respond.” Another distribution company official said, “Since both support and criticism from consumers have poured in after the decision to resume advertising, opinions within the company are also divided,” and added, “Whether it will help or hurt sales remains to be seen over time.”
Meanwhile, the explanation from Mima Mask, which was the first to decide to resume Kim Seon-ho’s advertisements, poses a question for corporate advertisers dealing with star celebrities caught in controversies. “At first, we took down the ads to show a neutral stance as an advertiser rather than as an individual. But we wondered if that was also a biased expression. It has become a convention to sue the model and take down ads when controversies arise, but we questioned whether that is the right thing to do. So, as another neutral expression, we restored the ads to their original state.”
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/Consumer Economy Department Deputy Chief ikjo@
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