Yoo Yeon Seok has issued a statement responding to allegations of tax evasion. The actor explained the details of claims of approximately 7 billion won in unpaid taxes.
The National Tax Service (NTS) has imposed a 7 billion won ($4.8 million) tax penalty on Yoo Yeon Seok. The “When The Phone Rings” actor called the charges unfair and filed a review.
More recently, his fellow Kdrama actress Lee Hanee (Honey Lee) was ordered to pay 6 billion won by tax authorities.
Yoo Yeon Seok Tax Evasion Allegations
Yoo Yeon Seok had established his own entertainment company, Forever Entertainment. He serves as the company’s CEO. A tax investigation was launched after authorities detected potential irregularities in the company’s setup. As a result, the 40-year-old actor was slapped with a 7 billion won tax bill. In response, he challenged the tax assessment by filing for a Pre-Taxation Review in January.
This review process allows taxpayers to dispute tax decisions before they are finalized. Both internal and external reviewers will re-examine the case as part of the review.
His team will dispute the 7 billion won tax charges, claiming it’s unfair and excessive. They plan to present their case with clear evidence to reduce the amount to 3 billion won (around 2 million USD).
Forever Entertainment, founded by Yoo Yeon Seok in 2015, is a diverse corporation with multiple business ventures. The company was initially established to produce YouTube content, but it has since expanded into various other areas.
These include running a restaurant, music production and supply, event planning, and broadcasting equipment rental. Additionally, Forever Entertainment operates an online shopping mall and is involved in the wholesale and retail of clothing and miscellaneous goods.
Yoo Yeon Seok Responds to Tax Evasion Allegations
On March 14, a representative from his agency King Kong by Starship told Dispatch, “It has not been finalized and notified, and it is a matter arising from a difference in opinion on the interpretation and application of tax laws. For the past 5 years, we have interpreted and paid income tax as a non-corporate taxpayer.”
They added, “The tax authority has imposed personal income tax on the part that the tax representative has already reported as corporate income. We will actively present our case through the proper procedures.”
As per the agency, Yoo Yeon Seok reported his income from his entertainment company as “business revenue”. However, the National Tax Service (NTS) classified this income as “personal income”, which led to the dispute.
The agency is currently waiting for the tax authority’s notice on the review application filed by Yoo.
On the work front, Yoo Yeon Seok rose to global fame for his portrayal of a political spokesperson in the drama “When The Phone Rings”. He is currently on fanmeeting “The Secret Code: Y”, with upcoming shows scheduled in Tokyo (March 15) and Taipei (March 22).