When you enter into an endorsement agreement with a celebrity in order to advertise your products and services, the overall behavior of that celebrity impacts the value and reputation of your business positively, and sometimes negatively. Therefore, most endorsement agreements with a celebrity or a sports star have a so-called Morals Clause.

What is a Morals Clause?

The morals clause imposes a contractual obligation for the models not to cause any harm to the public image of the sponsor or the brand owner.  It is the same in South Korea.