Ruler (Park Jae-hyeok) of Gen.G, a League of Legends pro gamer who won a gold medal at the Hangzhou Asian Games, will be investigated by the league over allegations of tax evasion.
The League of Legends Champions Korea (LCK) secretariat said on the 1st that it is "aware of the recent matter regarding Ruler and is conducting related internal review and investigation," adding, "to carefully verify the facts, we will form an investigation committee that includes external experts."
It added, "At this stage, we will first proceed with forming the investigation committee and commencing the investigation, and no separate provisional measures will be applied," and "depending on the results of the investigation and related regulations, we will consider additional measures if necessary."
According to the Tax Tribunal's decision, Ruler hired his father, identified as A, as his manager and paid him labor costs from 2018 to 2021. A invested Ruler's annual salary and prize money in stocks and other assets, earning trading gains and dividends revenue.
After reviewing the flow of funds, the National Tax Service determined that the amounts Ruler paid his father were unrelated to business and could not be included as necessary expenses. Although he could have managed the asset himself, it viewed the use of a borrowed name as being for the purpose of avoiding taxes.
However, Ruler's side argued that his father effectively served as a manager, including concluding team contracts, before the introduction of a certified agency. It filed an appeal with the tribunal, saying the stock name trust was for the purpose of managing the asset and that the imposition of gift tax was unlawful.
The Tax Tribunal did not recognize the labor costs paid to A as necessary expenses. It determined there was a tax avoidance purpose, saying that the asset formed through the borrowed-name stocks was used to pay A's comprehensive income tax or credit card bills.
Ruler posted on his social media (SNS) the same day, saying, "There is no fact that I intentionally hid or concealed income."
Ruler said, "My father quit his job in 2018, before the certified agency system, and took on the roles of manager and agent in full," adding, "the labor costs for those activities were not recognized as necessary expenses by the National Tax Service, and I respect the authority's decision."
He added, "The stock name trust also was not for the purpose of a gift or avoiding taxes; I asked for management because I lacked experience in asset management," and "this, too, is my fault; I have paid all related gift tax in full, and the relevant stocks have been restored to my name."
He continued, "I take responsibility for this matter and will fully cooperate with the league's review."