Huge debt stifles 'Last Godfather' director Shim

By Kim Tae-jong

Shim Hyung-rae, the director of "The Last Godfather" (2010) and "D-War" (2007), is drowning in enormous debt. Industry insiders say his production firm Younggu-Art Entertainment is on the verge of going under.

Rumors about the company's financial difficulties were sparked by a petition by 43 employees protesting the overdue payment of salaries. Shim, a comedian-turned-filmmaker, was summoned on Aug. 19 by a regional labor office to be questioned over the unpaid wages.

An official from the Ministry of Employment and Labor said Shim had suffered from financial difficulties due to investing massively in his movies. He admitted he was not able to pay the estimated 800 million won in total outstanding wages.

In contrast to excessive media hype on the success of his films, his movies actually failed to break even.

"The Last Godfather" only drew 2.56 million viewers, falling short of an audience of 4.5 million total to recover production costs, consequently stripping him of his wealth.

According to a financial firm, his company owes about 5 billion won to savings banks, but the entire amount of debt could be much higher. Most of his property including his house and office building has been forfeited for overdue debt repayments.

There are also rumors that his financial hardship stems from an addiction to gambling.

A man who introduced himself as an employee of Shim's company posted a message on the Internet stating that the huge debt was a result of habitual visits to casinos. The employee wrote",To be honest, the problem is he is addicted to gambling. He frequently goes to a casino and that's how he fell into such massive debt".