Court Dismisses First Instance Lawsuit Confirming Non-Existence of Debt Against Netflix and SKB (Update)

[Asia Economy Reporter Cha Min-young] Netflix lost the first trial in the declaratory judgment lawsuit it filed against SK Broadband regarding non-existence of debt.

On the 25th, Judge Kim Hyung-seok of the 20th Civil Division at the Seoul Central District Court dismissed Netflix's lawsuit against SK Broadband seeking confirmation of non-existence of debt.

The court stated, "Regarding the plaintiff's claim for confirmation of negotiation obligations and payment obligations against the defendant, it has been determined that the benefit of confirmation of negotiation obligations is not recognized based solely on the evidence submitted by the plaintiff."

It added, "Regarding the payment obligation, the plaintiffs are currently directly connected in Hong Kong, apparently under agreement and in the process of negotiation," and explained, "Under the principle of freedom of contract, whether to enter into a contract and what payment to make must be decided by the parties' agreement, and it is not a matter for the court to intervene and order the contract to be concluded."

Netflix filed the non-existence of debt lawsuit against SK Broadband in April last year. The two parties held three rounds of hearings and technical presentations (PT) from October to April of this year.