Kim Seon-Ho's Tax Evasion CONFIRMED? Actor Receives Suspicious Settlement Money From One-Person Family Corporation

Kim

Seon-Ho's name surfacing in another tax evasion case, on similar lines to his Fantagio labelmate Cha Eun-Woo, has left fans disappointed. Fresh from the success of Netflix show Can This Love Be Translated? Kim is now facing unexpected trouble for allegedly operating a "one-person" company. Despite Fantagio quickly issuing a statement denying the claim, things refuse to die down. Kim's case comes up days after Cha, who's currently serving his mandatory military term, came under investigation by the National Tax Service for allegedly evading taxes amounting to 20 billion KRW (about $13.7 million), in what is being called "the largest tax retroactive charge ever imposed on an individual entertainer in South Korea."

Kim Seon-Ho's 'tax laundering' allegation

On February 3, it was revealed that Kim Seon-Ho received settlement payments through a one-person company, SH Do, established in January 2024 while under his previous agency. The settlement money through a family corporation is now being categorised under "tax laundering." This means that if his income is recorded as personal income, he needs to pay an income tax of up to 49.5 percent. And in case he takes it as corporate income, he is entitled to a corporate tax benefit of up to 19 percent.

Agency agress to settlement payment

Reacting to the claim, Fantagio told OSEN, "It is correct that we temporarily received settlement payments from the former agency, after establishing the corporation in January 2024." An official from his former agency further explained, "We simply deposited the money into the account as requested by the actor."The report states that this is a clear case of tax evasion, and not tax avoidance. Infact, it called it an allegedly deliberate attempt to divert funds from tax rates.

Legal community explains 'tax evasion'

Koreaboo quoted head attorney Noh, "In light of the cases of Cha Eunwoo and Kim Seon Ho, income diversion through unregistered corporations is a key factor in undermining transparent accounting and tax management. Thorough investigations by authorities are more crucial than ever to eradicate tax evasion exploiting institutional loopholes."Attorney Noh added that Kim couldn't register the corporation as a "popular culture and arts planning business", which was a mandatory requirement. "In the cases of Cha Eunwoo and Kim Seon Ho, the connection between unregistered businesses and the exploitation as a means of tax evasion by high-income celebrities is increasingly being revealed.”

About Kim Seon-Ho's case

On February 1, reports surfaced that Kim Seon-Ho established a family-run corporation separate from Fantagio in January 2024, listing his own residence in Yongsan, Seoul, as the company address. This could be for "tax-saving" with the 39-year-old actor acting as its CEO, while his parents being named as internal directors and auditors.