MBC every1's news-entertainment show News Agency! Kura's Desk thinks so; they're reporting that the romance is on. Last year, reports that the two were dating spread when Gong Yoo and Im Soo Jung were seen together at the Jeju International Airport in September. At the time, Gong Yoo issued a strong denial to quash the rumors, saying, "Im Soo Jung and I are merely good friends, and a group of our friends had met in Jeju Island." Im Soo Jung, on the other hand, had an indirect denial, saying, "I'm touched, since this is the first time I've been involved in romance rumors in my career."

Even amid heated interest from netizens, the two denied a relationship; the topic gradually faded away. But as Gong Yoo's military enlistment neared (his service started on the 14th), producers of the show began taking more of an active interest, keeping watch over the star's home and hinting that there's proof of a relationship. But, naturally, they're keeping mum for the present until they reveal the facts of the case, in the January 25 episode of the program.
original article: http://www.newsen.com/news_view.php?news_uid=200677
translated by: http://www.dramabeans.com/2008/01/are-they-or-arent-they/