“They say you don’t have to worry about celebrities.” Looking at the numbers it is easy to understand why. KRW 20 billion for Cha Eun-woo, KRW 7 billion for Yoo Yeon-seok and KRW 6 billion for Honey Lee – these are the additional tax amounts imposed following the National Tax Service’s (NTS) audits of celebrities’ single-member companies from last year until early this year.
The sheer size of the tax assessments stunned the public. Many react with disbelief, asking: “How much do celebrities earn if their taxes alone amount to billions of won?”
A-list stars can earn in a short period what most people could never imagine making in a lifetime. The core of their income structure lies in advertising and event appearances. As the global popularity of K content continues to increase, celebrity profiles and appearance fees have also increased at a remarkable rate.
Cha Eun-woo, who recently came under scrutiny, is considered a high-level “A-plus Grade” figure in the advertising industry. Its endorsement fees reportedly amount to around KRW 2 billion for a global annual deal and around KRW 1 billion for domestic deals. Given the number of endorsements signed over the years, some estimate that its potential cumulative advertising revenues could approach KRW 100 billion.
However, not all celebrities earn as much as Cha Eun-woo, Yoo Yeon-seok or Honey Lee. Just as acting roles and big projects tend to be concentrated among a small group of stars, income is also heavily skewed towards a select few. This focus reflects the competitive nature of capitalism, where success amplifies further opportunities.
Changes are also emerging on the advertiser side. With rapidly changing trends and concerns about risks to celebrities’ private lives, brands are increasingly reducing contract terms and strengthening penalty clauses. For celebrities, this has led to a push towards diversifying income streams rather than relying only on long-term endorsement deals.
Another major source of income for celebrities perceived as wealthy is event appearances. Fees for events in the Seoul metropolitan area reportedly run into tens of millions of won, with even higher amounts for regional events. Depending on the nature of the event and the level of participation required, the compensation can go even further.
That said, the higher a star’s income, the higher the resulting tax burden.
To manage this problem, many celebrities have tried to reduce their taxes through various expense deductions. It is in this process that differences in interpretation between taxpayers and the National Tax Service have repeatedly emerged, often resulting in high-profile audits and large additional tax assessments that continue to stimulate public debate.
Sources: Nate
