NCT members Johnny, left and Haechan, right. [NEWS1]

SM Entertainment announced Wednesday it is taking legal action against those who spread rumors of NCT members Johnny and Haechan for allegedly engaging in prostitution and drug use in Japan.

"Rumors of provocative content, including Johnny and Haechan's [alleged] prostitution and drugs, are being indiscriminately circulated and reproduced online," said the agency in a notice on Kwangya 119, an artist rights protection website that the agency created back in 2023.

"Unreal rumors and malicious slander continue to be created against artists such as NCT and Kim Hee-chul," said the agency. "Internal investigation confirmed that this rumor is not true at all, and is a criminal act that seriously defames the artists."

The agency revealed that it collected data about several malicious posts, and said that it “will not sit idly by criminal acts” and intends to pursue “legal punishment against any actors involved regardless of nationality without leniency or agreement."

"Please be aware that even at this moment, any act of uploading malicious posts can be subject to punishment," said the agency.

Kim Hee-chul of Super Junior took to fan platform Bubble to give an explanation as well. He denied any affiliation with the aforementioned NCT members, saying he had “never met, let alone ate or drank with” them. "I don't even have their contact information," said Kim.

SM Entertainment's stock price plunged 8.18 percent on Tuesday by the end of the day. As of Wednesday early afternoon, stocks rose by 5.62 percent after SM addressed the rumors.