Kim Seon Ho releases a brief statement, but remains silent on his parents’ salaries and corporate card allegations

On February 1, Kim Seon Ho’s Fantagio agency released an official statement, saying, “Kim Seon Ho is currently carrying out activities under an exclusive contract signed in his personal name with Fantagio, and all contracts and activities have faithfully complied with legal and tax procedures.” The agency added that “the former company mentioned in the reports was established for theatrical production and related activities and was not created for the purpose of reducing or evading taxes.”

However, the main point of the allegations is not the stated purpose of the company’s founding, but rather the way it was managed. Reports say that in early 2024, Kim Seon Ho set up a registered performance planning company in his residence in Yongsan-gu, Seoul, with his parents acting as the in-house director and auditor. The controversy centers on allegations that his parents were paid salaries ranging from millions to tens of millions of won despite minimal actual business activity, and that company cards were used for personal living and entertainment expenses.

While Fantagio said the company is currently in the process of dissolving, he did not explain why the closure was necessary if no wrongdoing had occurred, further fueling suspicions.

In celebrity tax disputes, one of the issues most closely scrutinized by the National Tax Service is the so-called “cost of ghost work”. When relatives are listed as managers or employees and are paid salaries, the tax authorities evaluate whether the work actually took place. If employment records and duties are unclear, such salaries may not be recognized as legitimate business expenses and may be reclassified as personal income for the company head, resulting in additional taxes and penalties.

Similar cases have surfaced in the past. Broadcaster Park Na Rae has previously faced allegations of family-related business management and improper expense management in conflicts with former managers. More recently, Fantagio artist Cha Eun Woo has also come under scrutiny due to a single-person agency structure linked to family members, with speculation escalating to the possibility of tax evasion involving tens of billions of won.

Experts point out that while setting up a company itself is not illegal, issues related to salaries paid to relatives and the use of company funds for personal expenses are among the most sensitive areas in tax audits. They emphasize that this is not an issue that can be resolved with just a brief explanation, but one that requires transparent disclosure supported by concrete documentation.

Kim Seon Ho, who successfully returned to the spotlight after a period of self-reflection following a personal controversy in 2021 – notably through the film The Childe and the Netflix series Can This Love Be Translated? – now faces concerns that this latest controversy could once again weigh heavily on the momentum of his well-deserved return, if it continues to unfold.

Sources: Daum

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