Dust has settled, as arguments subside about Kim Soo Hyun's contract with a Chinese water commercial company, the actor has finally decided to back out of the agreement. KeyEast Entertainment, his management agency, and Hengda Bingquan have come into mutual terms to proceed with the contract after a series of controversy.

"After rounds of discussion, China's Hengda Group and KeyEast came to the agreement to fulfill the responsibility bound by the trust of two companies rather than resorting to extreme measures," a representative of KeyEast said in an official statement.

For the record, initial reports of My Love from the Stars actor backing out of the contract involved a cultural and historical dispute between China and Korean concerning Jang Bai Shan.

Jang Bai Shan, the brand on the bottle, is also the name of a water spring that lies on the border of North Korea. Chinese government takes into account many historical facts which would conclude that the mountain is part of their territory.

The Hengda Group previously stated that a $5 million penalty will be given against KeyEast and their talent, Soo Hyun, in the event that they decided to cancel the agreement. Co-star Jun Ji Hyun together with her agency, Culture Depot, is yet to decide on what course of action to take on the matter.

Kim Soo Hyun is an active endorser of popular brands such as Aokang, Semir, Yili, Tencent Mobile, Hyundai, Coca-Cola, Haagen-dazs, Ziozia, Samsonite Red, Prospecs, Beyond, Bean Pole, Petizel and Samsung. He is hailed as the fourth richest South Korean celebrity by Forbes magazine.