Ji Chang Wook, Cha Eun Woo and Kim Seon Ho have all recently been linked to tax investigations or reassessments. In each case, the central question concerns how income was processed through individual agencies or family-run companies.
The artists and their agencies have stressed that the disputes arise from differences in the interpretation of tax rules, rather than deliberate tax evasion.
Ji Chang Wook is reportedly valued at tens of billions of won
Ji Chang Wook recently became the latest celebrity involved in the issue. According to a June 2 report by Field News, the Seoul Regional Tax Bureau conducted a special tax investigation on the actor around March and imposed additional taxes worth tens of billions of won.
Authorities would investigate whether the revenue had been improperly managed through a private company linked to the actor. His agency, Spring Company, apologized for causing concern but denied any intentional wrongdoing. “There has been no deliberate withholding of income or tax evasion through illegal methods,” the agency specified.
He explained that Ji Chang Wook and the tax authorities had different opinions regarding the application and interpretation of the tax law. The company added that it respects the outcome of the investigation and intends to pay the assessed amount without delay.
Cha Eun Woo’s case involved a much bigger figure
Cha Eun Woo faced a similar controversy earlier this year. In January, reports said he received a tax reassessment notice worth about 20 billion won in relation to income distributed through a single-member agency registered in his mother’s name.
Fantagio was reportedly valued at an additional 8.2 billion won separately. Cha Eun Woo’s side filed a pre-assessment review request and initiated procedures to explain their position. According to Fantagio, the total amount paid was approximately 13 billion won.
As the criticism intensified, Cha Eun Woo issued a lengthy apology. “If there are aspects that I have not examined carefully enough, the responsibility also falls on me,” he wrote.
Kim Seon Ho also addressed concerns about the family business
A month later, Kim Seon Ho was reportedly investigated for processing income through a family company. His side later announced that the company was in the process of closing down. The actor said he had taken steps to correct the way the company had been run, including returning company vehicles and reviewing past use of company cards and family salary payments.
Fantagio later issued a broader apology for the tax disputes involving the company and its artists. The agency acknowledged management shortcomings and promised to strengthen internal accounting, audit and decision-making systems.
Tax experts cited in the report emphasized the principle of substance over form under Article 14 of South Korea’s Framework Law on Domestic Taxes. Setting up a private company is legal. However, when a company does not operate as a truly independent business, tax authorities may determine that its income should instead be treated as the individual’s personal earnings. Investigators can examine whether the company maintains an office, hires employees, signs contracts independently and manages funds separately from the celebrity.
Sources: Daum | Television reportage
