Actor Kim Soo-hyun holds its bakery chain Tour les Jours' product in an advertisement in this undated photo. Courtesy of CJ Foodville

CJ Foodville, the restaurant arm of food and entertainment conglomerate CJ Group, said Thursday its bakery franchise has terminated an advertisement contract with actor Kim Soo-hyun due to his dating scandal.

CJ Foodville re-signed him for the bakery chain Tour les Jours in September, nine years after their initial 2012-2015 partnership.

"The contract was originally scheduled to expire at the end of this month. The company has decided not to extend the deal," a company spokesperson said.

The actor has recently been at the center of an escalating controversy despite his agency's denial of allegations that he was in a romantic relationship with the late actress Kim Sae-ron when she was underage.

Kim Sae-ron, star of the hit films "The Man from Nowhere" and "The Neighbors," was found dead at her home last month. She was 24.

The scandal has also placed Homeplus, which recently hired him as a brand ambassador to boost sales, in a difficult position.

"The latest two-week deal (with Kim) ended on Wednesday and the company will monitor the situation to decide on a new contract in the future," a Homeplus spokesperson said.

Homeplus hired him three times last year for its promotional events to boost sales.

The actor plans to clarify his position on the allegations next week, his agency, Gold Medalist, said without elaborating. (Yonhap)