Actor Kim Soo-hyun spurned rumors of a multi-million-dollar penalty for the cancellation of an advertisement with Chinese bottled water maker, Hengda Group.

“Since we requested a revocation of the contract on June 20, we haven’t received a statement or a reply from the advertiser. It can be seen as part of the process for an amicable settlement,” Kim’s management agency, Keyeast Entertainment, told The Daily Sports on Tuesday.

Kim and actress Jun Ji-hyun, stars from the viral drama series “My Love from the Star,” requested to nullify their commercial deals with Hengda Bingquan amid growing controversy over the name of water source for the product.

The duo’s decision came shortly after some Koreans pointed out that the mineral water listed its source as “Jang bai shan,” rather than the Korean name, “Mount Baekdusan,” claiming that the labelling could be part of China’s Northeast Project.

Mount Baekdusan, which lies on the border between China and North Korea, is one of the many flashpoints between South Korea and China over their shared history.

In regards to the sensitive matter, Munhwa Ilbo reported that the two actors are on the verge of paying penalty fees of around 10 billion won ($10 million).

“Usually if the cause of the contract cancellation is the model, he or she has to compensate three times the guarantee,” it said.

The media outlet continued that Kim and Jun may have to compensate for time and property damage due to the discarding the commercial clip, hiring new models, and shooting a whole new ad.

“Considering how the ad industry runs, Hengda Group could ask for 5 billion won ($4.9 million) in penalties from each celebrity,” the report said.

But Keyeast dismissed the claims, saying “they were mere speculation.”

By Ha Ji-won, Intern reporter (jiwonha@heraldcorp.com)