The controversy erupted shortly after Kim Sae-ron's death in February, which was ruled a suspected suicide amid growing personal and online pressures. An online channel reportedly linked the pair, alleging they were in a relationship for six years from when Kim Sae-ron was just 15 years old. Kim Soo-hyun clarified that they only dated as adults between 2019 and 2020. Through an emotional address, he expressed remorse for the fallout of the situation, asserting that "posthumously vilifying others, especially when they're not here to defend themselves, is deeply distressing."

As the media frenzy ignited following the accusations, Soo-hyun's representation released messages showing that communications regarding the alleged debt had been misinterpreted. He urged both parties to share evidence for the sake of transparency and the truth. Kim also indicated that Kim Sae-ron faced tremendous pressures from her online following and from her agency, with reports of mental health struggles heightening around her public controversies.

The backlash has significantly affected Soo-hyun's career, with multiple brands halting collaborations and filming on a Disney+ project temporarily put on hold. It follows that his agency has filed legal actions against both Kim Sae-ron’s family and sources of the controversy. The tumultuous chapter in the South Korean entertainment world is still unfolding, as both parties navigate the emotional and legal fallout of their tumultuous relationship.