Ji Chang Wook’s agency acknowledges multi-billion KRW tax penalty, says it was “difference in tax interpretation, not intentional evasion”

Ji Chang Wook’s agency has released an official statement regarding reports that he was ordered to pay tens of billions of KRW in additional taxes.

On June 2, Ji Chang Wook’s agency Spring Company stated, “We sincerely apologize for causing concern to many people because of this matter. However, we would like to clearly state that there was absolutely no intentional omission of income or tax evasion through unlawful methods.”

Regarding the recent tax investigation, the agency explained, “There was a difference in opinion between the tax authorities and our side regarding the interpretation and application of tax law, specifically on whether profits generated from the actor’s entertainment activities should be attributed to the individual or to the corporation under the principle of substantive taxation.”

The agency continued, “Since his debut in 2008, we have strictly complied with all relevant laws and procedures without any tax-related issues and have always prioritized the faithful fulfillment of tax obligations. Therefore, we respect the results of the National Tax Service’s investigation and will promptly pay the imposed tax amount in accordance with the relevant procedures.”

They added, “To prevent similar issues from occurring in the future, we will more thoroughly review and strengthen our tax and accounting management systems.”

Earlier that day, media outlet Field News reported that the Seoul Regional Tax Office’s Investigation Bureau 2 conducted a non-regular tax audit on Ji Chang Wook in March and imposed tens of billions of KRW in additional taxes during the review process.

Recently, the Korean entertainment industry has seen a series of tax investigations involving celebrities operating one-person agencies. Actors Lee Min Ki, Lee Yi Kyung, Cha Eun Woo, Kim Seon Ho, Lee Ha Nee, and Yoo Yeon Seok have also reportedly faced additional tax assessments.

Full Statement from Spring Company:

“Hello, this is Spring Company.

We are issuing an official statement regarding reports about the tax investigation involving our actor Ji Chang Wook.

First, we sincerely apologize for causing concern to many people because of this matter. However, we would like to clearly state that there was absolutely no intentional omission of income or tax evasion through unlawful methods.

During the recent tax investigation, the company transparently submitted all related materials and cooperated faithfully with the investigation process. However, we confirmed that there was a difference in opinion between the tax authorities and our side regarding the interpretation and application of tax law, specifically on whether profits generated from the actor’s entertainment activities should be attributed to the individual or to the corporation under the principle of substantive taxation

Although there was a difference in interpretation, since his debut in 2008, we have strictly complied with all relevant laws and procedures without any tax-related issues and have always prioritized the faithful fulfillment of tax obligations. Therefore, we respect the results of the National Tax Service’s investigation and will promptly pay the imposed tax amount in accordance with the relevant procedures.

To prevent similar issues from occurring in the future, we will more thoroughly review and strengthen our tax and accounting management systems. We will continue to comply with the law and principles while faithfully fulfilling our tax obligations.”