One of the major entertainment agencies in Korea, SM Entertainment, won a lawsuit against Tao, the former member of kpop boyband EXO. The agency sued Tao over his failure to repay the company after his departure, and in a January 2015 ruling by the Intermediate People's Court in the Qingdao, Shandong, in China, Tao was directed to repay the company, reported Allkpop.

The entertainment agency issued a public statement on the lawsuit and highlighted the 'temporary payment claim' made by Tao. The former EXO member asked the company for a temporary payment when he left without notice in April 2015. SM's press release stated that the company complied with his demands. However, the "Reluctantly" singer failed to repay that amount even though he knew the bank account details. Instead, he approached a Korean court to pursue a legal case to nullify his contract with SM Entertainment, the press release claimed.

The Chinese court observed that Tao went against the law and breached 'sportsmanship of a contract' and 'God's principle of integrity', which China emphasises, reported Allkpop.

Meanwhile, Tao's representatives have responded to the press statement on the singer's official Weibo account. The latest news suggests that he asked for the bank account details but was not given any information. Tao's representatives further alleged, "SM Entertainment's intention was to draw out time so that they would curse Tao with a 'temporary payment claim' lawsuit."

Tao's press statement went on to explain, "SM Entertainment's statement's deliberately used exaggerated expressions and expanded the translation of Tao's temporary payment lawsuit. They created an adverse effect towards the cultural exchange between Korea and China and through moral criticism, turned the public opinion into a negative direction."

The Chinese singer's legal representatives have submitted "corroborative facts to distinguish the dispute," the statement read