Did Kim Seon Ho’s Agency Attempt To Shift The Blame Onto Former Agency Regarding Tax-Related Issues? Former Agency Issues Clarification
Kim Seon Ho’s former agency has responded to Fantagio’s recent statement regarding tax issues related to the actor!
As it became known that actor Kim Seon Ho received settlement payments through a one-person corporation he established during his time with his former agency, allegations of tax avoidance and violations of existing laws have surfaced.
A representative from his current agency Fantagio explained on the 3rd of February regarding the controversy, “It was only a temporary settlement (received from the former agency) after the corporation was established in January 2024.”
In response, the former agency told TenAsia, “We only deposited the money into the account requested by the actor.”
Previously, Fantagio drew a line regarding the controversy surrounding Kim Seon Ho’s family corporation, stating that “The corporation was established for the purpose of theater production and related activities,” and that it was not intended for deliberate tax reduction or tax evasion. They added, “After transferring to Fantagio, there has been no actual business activity for about a year, and the company is currently in the process of closing down.”
However, criticism continues over the fact that Kim Seon Ho received settlement payments under the name of the family corporation “SH2” rather than his personal name, with questions raised as to whether this was a roundabout method to reduce tax burden. While personal income is subject to a maximum income tax rate of 49.5%, corporations are subject to a maximum corporate tax rate of 19%.
Suspicions regarding the substance and operation of the corporation are also becoming more specific. As the corporation’s registered address is the same as Kim Seon Ho’s residence, questions have been raised as to whether it is a so-called “paper company” with no real business activity. Reports have also claimed that Kim Seon Ho’s parents, who are registered as inside directors and auditors, received high salaries through the corporation and used corporate cards for personal expenses such as living costs or entertainment.
In addition, the possibility of violations of existing laws is being discussed. It has been additionally reported that Kim Seon Ho’s corporation generated management-type revenue without registering as a “Popular Culture and Arts Planning Business,” which is a mandatory registration. Under current law, receiving management revenue without registration may be subject to criminal punishment, making future legal disputes over responsibility unavoidable. With another actor from the same agency, Cha Eun Woo, also being embroiled in similar allegations, public interest in the matter is growing even further.
Kim Seon Ho ended his exclusive contract with Salt Entertainment, with whom he had worked since 2018, and transferred to Fantagio last year. Reports also emerged that he was offered a contract worth over 20 billion won during this process, but Fantagio avoided specific comments, saying that “Actor contract fees are a company security matter.”
Source: (A)
