Gen.G pro gamer Ruler (Park Jae-hyeok), an Asian Games gold medalist caught up in a tax evasion controversy, will not face league-level sanctions.
The League of Legends Champions Korea (LCK) office said on the 1st that it "made a final decision not to impose separate sanctions" regarding Ruler's tax matter.
On whether the conduct constituted a crime, the LCK office said, "The provision in question, by its system and intent, applies on the premise of acts accompanied by criminal liability or comparably serious illegality, and we determined it does not apply to this matter."
It also determined that, considering the facts confirmed in the investigation and the nature of the conduct, it would be difficult to extend application to the sanctionable categories of "immoral conduct" or "conduct damaging dignity."
The LCK office added, "It was confirmed that the player, on the advice of a professional tax agent, carried out some 'tax-related procedures,' and the mere fact that such procedures were conducted cannot, by itself, determine illegality or whether sanctions apply," and "the statute of limitations for penalties applicable under LCK regulations to conduct related to this matter has already clearly expired."
It went on to say, "For similar matters in the future, we plan to review them under consistent standards by comprehensively considering whether related laws were violated, whether criminal liability is entailed, the gravity of the conduct, and the impact on the league."
According to a ruling by the Tax Tribunal released in Mar., Ruler from 2018 to 2021 employed his father, identified as A, as his manager, paid him a salary, and had him handle his annual salary contracts and administrative tasks. In the process, A invested Ruler's annual salary and prize money in stocks and other assets, generating trading gains and dividend revenue.
The National Tax Service determined that the amounts Ruler paid his father were unrelated to his work and therefore could not be included as necessary expenses. It also concluded that, although he could have managed the assets himself, placing them under a nominee was for the purpose of avoiding taxes.
Ruler's side, however, argued to the tribunal that before the introduction of certified agencies, his father effectively served as a manager in concluding team contracts, and that the stock nominee arrangement was for the purpose of managing the asset, making the imposition of gift tax unlawful.
With the release of this ruling, suspicions spread on online communities that Ruler had intentionally attempted tax evasion. In response, Ruler posted a statement on social media denying the allegations, saying, "There was no act of intentionally concealing or hiding income."
The LCK office has reviewed the matter since Apr. 1 by forming an investigative committee that included legal experts.