Lee Joon-gi Responds to Tax Evasion Allegations Amidst Ongoing Investigations

Lee Joon-gi has found himself embroiled in tax evasion allegations, following similar accusations against fellow actors Lee Ha-nee, Park Hee-soon, and Yoo Yeon-seok. On March 19, reports emerged that the Gangnam Tax Office in Seoul initiated a tax investigation into Lee Joon-gi and his agency, Namoo Actors, resulting in a tax claim of 900 million KRW against the actor. The National Tax Service pointed out transactions between Namoo Actors and J Entertainment, a company co-founded by Lee Joon-gi and his father. Lee established J Entertainment in January 2014 and signed an exclusive contract with Namoo Actors the same year.

Namoo Actors reportedly processed payments for Lee's appearances through J Entertainment, leading to the actor's income being taxed as corporate tax rather than personal income tax. The National Tax Service classified this as tax evasion, prompting the 900 million KRW claim.

In response, Lee Joon-gi's representatives stated, "Lee Joon-gi underwent a regular tax audit by the Gangnam Tax Office in 2023 and has fully paid the assessed taxes, respecting the tax authority's decision. This taxation issue arose from differing interpretations of tax law between our tax representatives and the authorities, which deviated from previous tax practices. There are ongoing debates among tax experts and academics regarding this matter."

Namoo Actors added, "The main issue during the investigation was whether the transactions between us and J Entertainment were legitimate and whether the income should be classified as corporate tax for J Entertainment or personal income tax for Lee Joon-gi. No other instances of tax evasion or avoidance related to Lee Joon-gi were identified during the investigation."

The agency emphasized their respect for the tax authority's findings but noted that similar issues were not raised during previous audits in 2015 and 2019. They expressed their intention to seek a ruling from the Tax Tribunal, as they believe there has been no prior judgment on the management of income and assets through personal corporations.

In conclusion, the agency stated, "Lee Joon-gi has diligently fulfilled his tax obligations under the guidance of his tax representatives. Both Namoo Actors and Lee Joon-gi will continue to comply with laws and procedures as responsible citizens of South Korea. Thank you."

Prior to Lee Joon-gi, Lee Ha-nee and Yoo Yeon-seok also faced significant tax claims following audits. Lee Ha-nee was reported to have been assessed an additional 6 billion KRW in September 2022 after a thorough investigation by the National Tax Service, which uncovered signs of tax evasion between her and her former agency, Saram Entertainment. Lee Ha-nee established a corporation named Hanhee in 2015 while under Saram Entertainment, later changing its name multiple times. As of 2023, her husband is reportedly the current CEO of the company.

Yoo Yeon-seok, on the other hand, received a tax claim of approximately 7 billion KRW, which included penalties. His agency, King Kong by Starship, clarified that the issue stemmed from differing interpretations of tax law between their tax representatives and the authorities, and they are currently awaiting a decision following a pre-tax review.

As these tax evasion allegations continue to surface among actors, some argue that it is unfair to judge them solely based on the amounts involved. Given that the differing perspectives were not previously flagged in earlier audits, it is possible that they acted in good faith. Furthermore, if Yoo Yeon-seok's pre-tax review is successful, his tax claim could potentially be reduced significantly, drawing further attention to the ongoing situation.