In early trading on the 2nd, Fantagio is plunging more than 7%. This appears to reflect successive allegations of tax evasion, following earlier claims that actor Cha Eun-woo evaded 20 billion won in taxes and now similar allegations surrounding fellow agency actor Kim Seon-ho.
As of 9:37 a.m. on the 2nd, Fantagio on the KOSDAQ market is trading at 405 won, down 34 won (7.74%) from the previous session.
The previous day, a media outlet reported there were indications that Kim Seon-ho tried to avoid taxes through a family corporation he ran separately from his agency. The report said Kim set up and operated a performing arts planning corporation, with family members registered as executives, at his home address in Yongsan-gu, Seoul, raising the possibility he routed income through the entity.
On the 1st, Fantagio issued a statement saying, "Kim Seon-ho is active under an exclusive contract signed in his personal name with Fantagio and is faithfully complying with legal and tax procedures regarding the current contractual relationship and activities."
It added, "The one-person corporation mentioned in the report was established for theater production and theater-related activities," and said, "It is by no means a corporation established for the purpose of intentional tax saving or tax evasion." It continued, "After moving to Fantagio, actual business activities have not been carried out for about a year, and we are currently proceeding with closure procedures in accordance with relevant laws and procedures."