Lee Joon-gi hit with 900 million won back tax bill, appeals ruling
Actor Lee Joon-gi / Courtesy of Namooactors Entertainment
Actor Lee Joon-gi has been ordered to pay 900 million won ($680,000) in back taxes. His agency is taking the case to Korea's Tax Tribunal.
Lee’s agency, Namooactors Entertainment, said Wednesday, “Lee Joon-gi underwent a routine tax audit by the National Tax Service (NTS) in 2023 and was told to pay more taxes. He has since paid the full amount in accordance with the authorities’ decision.”
The agency explained that the issue stemmed from contrasting interpretations between tax authorities and Lee’s tax representative regarding how tax laws should be applied.
The core dispute concerns tax invoice transactions between Namooactors and JG Entertainment, a company Lee founded.
While no additional findings of tax evasion or underreporting were identified, the agency noted that this particular tax ruling differs from past auditing practices.
“This was not an issue raised in the regular tax audits conducted in 2015 and 2019,” the agency said. “There has been no prior legal precedent from tax authorities or courts regarding income and asset management through a personal corporation. While we respect the decision, we have cautiously filed a formal appeal with the Tax Tribunal, and the case is currently under review.”
The agency said that Lee has made every effort to fulfill his tax obligations in good faith based on professional guidance.
“As a citizen and a business entity in South Korea, Lee Joon-gi and Namooactors will continue to comply fully with all legal procedures and responsibilities,” it said.
According to media reports, the NTS initiated the audit of Lee and his agency in 2023, leading to the imposition of the 900 million won tax bill. Although Lee applied for a preliminary tax review, it was rejected, prompting the current appeal process.
Lee founded JG Entertainment in January 2014 and later signed an exclusive management contract with Namoo Actors. Under the agreement, Namoo Actors paid appearance fees not to Lee directly but to JG Entertainment, which reported the earnings as corporate income and paid corporate taxes accordingly, Namoo Actors said.
The controversy centers on the potential tax advantage gained from the lower corporate tax rate compared to individual income tax, raising suspicions of tax avoidance.
Similar concerns have recently surfaced involving other celebrities, such as Lee Ha-nee, Park Hee-soon and Yoo Yeon-seok, though each agency has firmly denied any wrongdoing and claimed that all procedures were carried out in accordance with the law.
This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.