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In May 2012, he released his first full-length Korean solo studio album Tarantallegra, while being represented by new management agency C-Je S Entertainment.
Following the release, he embarked on his first headlining world tour.
His first composition was a ballad titled "Nae Gyeote Sumsuil Su Ittdamyeon (White Lie)" (네 곁에 숨쉴 수 있다면), included in TVXQ's third Korean studio album, "O"-Jung. He also composed his solo slow-ballad "Rainy Night" of TVXQ's nineteenth Japanese single, If.../Rainy Night, an installment of the group's non-album release "TRICK" project.
For TVXQ's Korean comeback in 2008, he wrote "Noeur... 바라보다), which was featured in TVXQ's fourth Korean album.
The Seoul Central District Court granted the three members a temporary contract injunction in October 2009 and ruled that SM cannot interfere with their individual activities but also that they can only act as members of TVXQ through SM Entertainment.
In November 2012, the three years and four months lawsuit concluded as SM Entertainment and JYJ reached a mutual agreement to terminate all contracts between the two parties and not to interfere with each other's activities in the future.
In 2009, Kim and fellow TVXQ members Kim Jaejoong and Park Yoochun filed a lawsuit against SM Entertainment, arguing that their exclusive contracts were unilaterally disadvantageous towards the artists and should be invalidated.
Throughout his career as TVXQ's member, Kim had written and composed several songs that have appeared on the group's Korean and Japanese releases. At TVXQ's second Asian tour, he performed a solo self-composed dance track called "My Page".
In 2007, he was chosen to be part of Samsung's Anycall project group, Anyband.
The band comprises former label-mate female singer Bo A, Tablo of South Korean hip-hop group Epik High and jazz pianist Jin Bora.
Despite limitations in media coverage and promotional activities caused by a ban in the Entertainment Departments of South Korea's three main terrestrial broadcasters resulting from SM Entertainment's interference, Kim's first and second studio album reached top two on the Gaon albums chart in South Korea, as well as reaching number-ten and number-five on the Billboard World Albums chart for Tarantallegra and Incredible, respectively.
He is also known for being able to sell out tickets for his concerts and musicals within minutes, dubbed "the ticket power" by South Korean media.