Lee Joon-Gi’s response to the tax problem
On the afternoon of March 19, he declared the Lee Joon-Gi agency, Namoo Actors, “The actor Lee Joon-Gie underwent a regular tax audit by the Gangnam tax office in 2023 and paid the entire amount of taxes evaluated in relation to the decision of the tax authorities. ”
They continued, “This taxation was a question deriving from the differences of opinion regarding the interpretation and application of tax laws between tax agents and tax authorities, and it was a completely different decision from previous tax practices. There are opinions in conflict regarding the adequacy of this decision not only among tax experts but also in the academic world.”
The agency explained, “At the time of investigations, the issues with the tax authorities were if the transactions of the tax invoice between our company and JG Entertainment, which was founded by the actor Lee Joon-Gi, were legitimate and if the tax on this income should be considered a tax on the tax on JG Entertainment companies.
According to the agency, the issues mentioned in this tax assessment have never been raised during the previous tax investigations and there are no previous judgments of the tax authorities or courts regarding the practice of managing income and activities through a private company. As a result, they submitted a request for an exam to listen to the decision of the tax court again and the exam is currently underway.
In the end, they insisted, “The actor Lee Joon-gi tried to faithfully fulfill his tax obligations based on the Council of his tax agent. As a Korean and citizen company, Namoo actors and the actor Lee Joon-Gi will respect the law and the procedures and fulfill our responsibilities and obligations.”
Previous tax accusations
In the meantime, the actor Lee Joon-Gi is currently under control after being investigated by the National Tax Service of South Korea. According to a Tvreport report on March 19, the renowned star had to pay 900 million KRW (about 620,000 USD) in backward taxes following an in-depth examination of his financial registers.
The investigation, which according to what was reported began almost two years ago, focused mainly on Jg Entertainment, the Lee Joon-Gi company founded in 2014. Although it had an exclusive contract with the Namoo actors, the actor’s earnings from his projects were channeled through JG Entertainment, who classified them as corporate income. This classification has allowed the company to pay a 24% company tax instead of significantly higher personal income tax. The authorities suspect that this financial agreement was deliberately structured to reduce tax liabilities, causing a wide revision of its financial transactions.
In addition to the controversy, reports relating to a high -end penthouse in Cheonga, Incheon, which Jg Entertainment acquired in 2021 for 2.95 billion KRW (approximately 2.1 million USD) emerged. Specula that Lee Joon-Gi had used the property as a personal residence, fueling further control.
However, its representatives have categorically denied these statements, clarifying that the penthouse acts as an official headquarters of JG Entertainment. Since then, the tax authorities have examined the issue and have not found legal violations relating to the property.
Despite the current tax dispute, the Lee Joon-Gi agency claims that the actor has been fully cooperative with the authorities and undertakes to transparently resolve the matter.
