According to reports released on May 13, actor Lee Yi Kyung was recently subjected to a tax investigation related to the business of his one-man entertainment agency.
Authorities are said to have determined that some of Lee Yi Kyung’s personal income had been treated as business income through the agency structure, potentially reducing the amount of taxes paid. The issue reportedly centered on differences between personal income tax rates and corporate tax rates, leading tax officials to view the deal as having possible tax avoidance issues.
In response, Lee Yi Kyung’s Sangyoung ENT agency released an official statement explaining that the situation is the result of different interpretations of tax law regarding the processing of business expenses.
The agency stated: “The findings of the recent tax audit arise from differences in interpretation between tax authorities and our company regarding the standards for processing expenses during business operations.”
They strongly denied any intentional wrongdoing, adding: “There was absolutely no deliberate withholding of income or illegal tax evasion.”
The company also confirmed that Lee Yi Kyung intends to pay the imposed taxes in full without delay, committing to strengthening future tax management practices.
“We sincerely apologize for causing concern and will do our best to prevent similar issues from happening again,” the statement continued. “We will continue to faithfully fulfill our tax obligations by respecting laws and principles.”
Recently, several Korean entertainment figures, including Cha Eun Woo, Kim Seon Ho, Yoo Yeon Seok and Lee Hanee, were reportedly facing tax reassessments involving personal companies.
Individual agencies are commonly used in the Korean entertainment industry as a way for celebrities to manage business-related income and expenses under corporate structures. As similar controversies continue to emerge, industry organizations have reportedly called for clearer institutional guidelines regarding taxation and celebrity-owned companies.
Sources: Nate News
