Former EXO member Huang Zi Tao and his camp have released a statement saying that the decision to pay back a loan that Tao's apparently owes SM Entertainment is a "voluntary act."

The South Korean entertainment agency recently released a statement regarding how the lawsuit against Tao concluded in their favor.

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The lawsuit was initiated following the Tao's supposed inability to pay back a loan he has incurred from the agency.

SM Entertainment told the media that the Intermediate People's Court in Qingdao, Tao's hometown, ruled out that Tao should pay back the "temporary payment" that he has "delayed to pay back."

However, Tao's new agency has responded and refuted SM Entertainment's press release apparently in order to "prtect Tao's honor and argue what is right or wrong."

According to the official statement released by the Chinese idol's camp through his official Weibo page, Tao and SM Entertainment have been in negotiation since April last year, and it was a "voluntary act" on the part of the former to pay back the loan since deal was made before he left EXO.

SM Entertainment's release astated that Tao failed to pay back his loans on the promised date despite knowing the bank account details of the company. However, his agency argues that he stuck to the contract, and that through a representative, he asked for SM Entertainment's bank account, but the information was not given.

In order to prove their point and legitimacy of their claims, Tao's Chinese agency is said to have posted documents that would appear to support their statement.

TagsHuang Zi Tao, Tao, SM Entertainment