[theqoo] [EXCLUSIVE] KIM SEONHO, JUST LIKE CHA EUNWOO, RECEIVED SETTLEMENT AMOUNT AS A CORPORATION

Speculation has arisen that the background behind Kim Seonho’s decision to establish a family-run corporation to receive these payments involves “tax laundering.” If the income were recorded under Kim Seonho personally, it would be subject to a top income tax rate of up to 49.5% including local taxes. However, if treated as corporate income, it would qualify for a significantly lower corporate tax rate of up to 19%. A former agency official stated, “We simply deposited the money into the account requested by the actor.”

This is not tax reduction but constitutes clear tax avoidance aimed at exploiting differences in tax rates. In particular, since the address of Kim Seonho’s corporation is the same as his residence, suspicions that it is a paper company cannot be dismissed. As a result, there is a strong possibility that all funds received through this corporation could be deemed “income diversion.”

Attorney Noh Jong-eon, CEO of Jonjae Law Firm, stated, “Judging from the cases of Cha Eunwoo and Kim Seonho, income diversion through unregistered corporations undermines transparent settlements and tax management. At a time when it is more urgent than ever, relevant authorities must conduct thorough, comprehensive investigations and oversight to eradicate tax evasion that exploits institutional loopholes.”

Fantagio’s explanation has also backfired.

On the 1st, Fantagio stated regarding Kim Seonho’s tax evasion allegations, “The single-person corporation in the past was established for theatrical production and theater-related activities,” adding, “It was absolutely not established with the intent of deliberate tax reduction or tax evasion.”

Kim Seonho also failed to register for the mandatory “Popular Culture and Arts Planning Business.” Receiving settlement payments (management revenue) while unregistered constitutes a violation of the Popular Culture and Arts Industry Development Act and may be punishable by up to two years in prison.

Attorney Noh added, “Looking at the cases of Cha Eunwoo and Kim Seonho, a ‘meaningful correlation’ is increasingly being revealed in which failure to register as a popular culture and arts planning business is exploited as a tax avoidance tool by high-income celebrities, rather than being a mere administrative oversight.”

In response, Fantagio stated, “It is true that settlements were temporarily received (from the previous agency) after the corporation was established.”