Kim Seon Ho's tax evasion allegations deepen despite explanation, his one-person agency under scrutiny

Kim Seon Ho attempted to explain allegations of tax evasion, but his clarification has proven ineffective.

It was confirmed on February 3 that while under his previous agency, Kim Seon Ho received settlements for his entertainment activities through a one-person corporation, SH Do, which he established in January 2024.

Speculation has emerged that the reason Kim Seon Ho created a family-owned corporation to receive these payments was a form of “tax laundering.” If the income were recorded under Kim Seon Ho personally, it would be subject to income tax of up to 49.5 percent, including local taxes. However, if processed as corporate income, it would be taxed at a maximum corporate tax rate of 19 percent. A former agency official stated, “We simply deposited the funds into the account the actor requested.”

This is considered a clear case of tax avoidance that exploits differences in tax rates, rather than legitimate tax planning. In particular, because the registered address of Kim’s corporation is the same as his residence, suspicions that it is a paper company are difficult to dispel. As a result, there is a strong possibility that all funds received through the corporation could be deemed “diverted income.”

Attorney Noh Jong Eon, managing partner at Law Firm Jonjae, said, “Looking at the cases of Cha Eun Woo and Kim Seon Ho, income diversion through unregistered corporations is a key factor that undermines transparent settlements and tax management. This is a time when comprehensive investigations and strict oversight by relevant authorities are more urgently needed than ever to eradicate tax evasion that exploits institutional loopholes.”

Fantagio’s explanation has also backfired.

Previously, on February 1, Fantagio stated regarding Kim Seon Ho’s tax evasion allegations, “The one-person corporation was established in the past for theater production and theater-related activities,” adding, “It was absolutely not created with the intention of deliberate tax reduction or tax evasion.”

However, Kim Seon Ho also failed to register for the mandatory Popular Culture and Arts Planning Business license. Receiving settlement payments (management revenue) while unregistered constitutes a violation of the Popular Culture and Arts Industry Development Act and may result in a prison sentence of up to two years.

Attorney Noh added, “Based on the cases of Cha Eun Woo and Kim Seon Ho, a ‘meaningful correlation’ is increasingly coming to light in which failure to register as a popular culture and arts planning business goes beyond a simple administrative violation and is abused as a tool for tax avoidance by high-income entertainers.”

In response, Fantagio stated, “It is true that after the corporation was established, settlements were temporarily received from the previous agency.”