Amid the tax evasion allegations involving actors Lee Ha-nee, Park Hee-soon, and Yoo Yeon-seok, Lee Joon-gi's side has explained the situation directly.

According to a media outlet on the 19th, the Seoul Gangnam Tax Office initiated a tax investigation into Lee Joon-gi and his agency Namoo Actors in 2023 and demanded 900 million won in taxes from Lee Joon-gi. The National Tax Service pointed out the transactions between Namoo Actors and JAEGI Entertainment, a planning company founded by Lee Joon-gi and his father. Lee Joon-gi established JAEGI Entertainment in January 2014 and signed an exclusive contract with Namoo Actors in the same year.

Subsequently, Namoo Actors proceeded to settle payments by making fee payments to JAEGI Entertainment rather than to Lee Joon-gi, and Lee Joon-gi had been paying corporate taxes instead of personal income tax on his fees.

As the National Tax Service regarded this as tax evasion and demanded 900 million won from Lee Joon-gi, his side stated, "Lee Joon-gi received a regular tax audit from the Gangnam Tax Office in 2023 and was assessed taxes, and he respected the tax authorities' decision and paid the assessed taxes in full. This taxation issue arose from differences in interpretation and application of the tax law between the tax agent and the tax authorities, and it was a decision entirely different from prior tax practices, with disagreements about its implications even among tax experts and in academia."

Namoo Actors added, "The issue during the investigation was whether the transactions between us and JAEGI Entertainment, which was established by Lee Joon-gi, were legitimate and whether the income tax on this income would be viewed as corporate tax for JAEGI Entertainment or personal income tax for Lee Joon-gi. In this investigation, aside from the differing perspectives on the application of corporate tax and income tax, no other facts related to tax evasion or tax avoidance concerning Lee Joon-gi were pointed out."

The agency also stated, "Namoo Actors and Lee Joon-gi fully respect the results of this tax investigation and the decisions of the tax authorities," while adding, "However, prior to 2023, there were issues that had never been pointed out during previous regular tax audits in 2015 and 2019, and we understand that there have been no existing judgments from the tax authorities or courts regarding income and asset management practices through personal corporations, so cautiously, we have requested a ruling from the Tax Tribunal, and the hearing is currently underway."

Finally, the agency concluded, "Lee Joon-gi has worked diligently to fulfill his tax obligations under the advice of tax agents. Namoo Actors and Lee Joon-gi will thoroughly comply with the law and procedures as a corporation and a citizen of South Korea and will fulfill their responsibilities and obligations. Thank you."

Prior to Lee Joon-gi, Lee Ha-nee and Yoo Yeon-seok also received notifications of substantial tax penalties through tax investigations. Lee Ha-nee was subjected to a rigorous tax audit by the National Tax Service last September and was charged approximately 6 billion won in taxes. According to reports at the time, the Gangnam Tax Office captured signs of tax evasion between Lee Ha-nee and her former agency, Saram Entertainment, during the investigation into Saram Entertainment in 2022.

Lee Ha-nee established the corporation Hane Co., Ltd. in 2015 when she was affiliated with Saram Entertainment and later changed the name of the corporation several times, including to Lee Yoon, Hope Project, etc. Until 2023, she served as the representative of the corporation and now only holds the title of internal director. The current representative is reported to be Lee Ha-nee's husband.

In this regard, Lee Ha-nee's agency, Team Hope, stated, "Lee Ha-nee responded sincerely to the tax investigation carried out as part of the ad hoc integrated tax consultation for corporate artists at the Seoul Regional Tax Service, and she has complied with the law and procedures to fulfill her tax obligations under the advice of tax agents. This tax was an additional charge due to differing perspectives between the tax authorities and tax agents, and we want to clarify that it has no relation to intentional tax omissions."

Yoo Yeon-seok also did not have a significantly different position. However, in Yoo Yeon-seok's case, it is reported that he did not just receive simple grants but has developed and produced YouTube content as an extension of his entertainment activities, operating additional businesses and a restaurant based on this.

Yoo Yeon-seok reportedly received a notice of approximately 7 billion won in penalties, including additional tax and related fees, and concerning this, his agency, King Kong by Starship, released an official statement, explaining, "This matter arose from differences in interpretation and application of tax laws between tax agents and the tax authority, and it is currently at the stage of awaiting notification from the tax authority following pre-tax review."

Additionally, the agency stated, "This matter is not final and has not been officially notified, and we intend to actively clarify the issues related to legal interpretation and application through proper procedures," adding, "This issue pertains to the past five years of income from Yoo Yeon-seok's corporation, which operated additional businesses and a restaurant based on YouTube content developed and produced as an extension of his entertainment activities, where the tax authorities interpreted this as subject to personal income tax rather than corporate tax, resulting in personal income tax being applied despite the fact that the tax agent had reported all corporate revenues. "

As allegations of tax evasion by the actors continue to surface, some have expressed the view that it is inappropriate to criticize them based on simple amounts of money. Especially since, as mentioned by Lee Joon-gi's side, these were issues that had not been raised in the tax audits of 2015 and 2019, there is a high likelihood that they understood and complied with legal procedures. Additionally, if Yoo Yeon-seok passes the pre-tax review, the 7 billion won penalty could potentially be reduced to around 3 billion won, drawing further attention.

[Photo] OSEN DB

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