Kim Seon-ho Faces Tax Evasion Allegations Amid Corporate Entity Controversy

Kim Seon-ho's former agency has responded to tax evasion allegations, stating they 'only followed the actor's requests.'

The controversy arose when it was revealed that actor Kim Seon-ho received payments through a personal corporation he established during his time with his former agency. This has led to suspicions of tax evasion and legal violations. A representative from his current agency, Fantagio, clarified on the 3rd that the payments were made temporarily after the corporation's establishment in January 2024. The former agency told TenAsia, 'We only deposited the money into the account requested by the actor.'

Previously, Fantagio addressed the controversy surrounding Kim Seon-ho's family corporation, stating that 'the corporation was established for theater production and related activities,' denying any intentional tax evasion. They further explained that 'there has been no actual business activity for a year since Kim Seon-ho joined Fantagio, and the corporation is currently in the process of being dissolved.'

However, questions persist about whether receiving payments under the family corporation 'SH2' instead of his personal name was a strategy to reduce tax burdens. While personal income is subject to a maximum tax rate of 49.5%, corporations are taxed at a maximum rate of 19%.

There are growing suspicions about the corporation's legitimacy and operations. The corporation's address matches Kim Seon-ho's residence, raising questions about it being a 'paper company' with no real business activities. Reports have also surfaced that Kim Seon-ho's parents, listed as directors and auditors, received substantial salaries and used the corporate card for personal expenses.

Additionally, there are concerns about potential legal violations. Kim Seon-ho's corporation reportedly generated management-related revenue without registering as a 'public culture and arts planning business,' a mandatory requirement. Operating without registration could lead to criminal charges, suggesting inevitable legal disputes. The public's interest is further piqued as fellow Fantagio actor Cha Eun-woo faces similar allegations.

Kim Seon-ho ended his exclusive contract with Salt Entertainment, with whom he had been since 2018, and moved to Fantagio last year. Reports suggested he was offered a contract worth over 20 billion won, but Fantagio stated, 'The actor's contract details are confidential,' avoiding further comment.

Lee So-jung, TenAsia Reporter forusojung@tenasia.co.kr