Actor Lee Joon-gi has clarified that the imposition of approximately 900 million KRW in taxes on him arose from differing interpretations and applications of tax law between his tax representative and the tax authorities.
On the 19th, his agency, Namoo Actors, stated, “Lee Joon-gi was subjected to a regular tax audit by the Gangnam Tax Office in 2023, resulting in a tax imposition. He has fully paid the imposed taxes out of respect for the tax authorities’ decision.”
However, they added, “This taxation issue stemmed from differences in opinion on the interpretation and application of tax law between the tax representative and the tax authorities. The decision was unprecedented and differs from the usual taxation practices, leading to differing opinions on its validity among tax experts and academics.”
It is reported that Lee Joon-gi was imposed with around 900 million KRW in taxes through the National Tax Service’s audit. He has contested this decision and filed for a judgment at the Tax Tribunal, with the related proceedings currently underway.
Previously, in 2014, Lee Joon-gi established JG Entertainment and signed an exclusive contract with Namoo Actors in the same year. Since then, Namoo Actors has been paying his earnings to JG Entertainment.
In this process, JG Entertainment considered these amounts as corporate revenue and paid corporate taxes. However, the National Tax Service judged that this should be classified as personal income, suggesting potential tax avoidance due to differences between corporate and personal taxes.
Namoo Actors explained, “The point of contention during the audit was whether the tax invoice transactions between us and JG Entertainment were appropriate and whether the income should be considered as corporate tax for JG Entertainment or as personal income tax for Lee Joon-gi. Apart from the issues regarding the application of corporate and personal taxes, Lee Joon-gi has not been pointed out for any other tax evasion or avoidance during the investigation.”
They further explained, “This issue was never pointed out during the regular tax audits in 2015 and 2019 before 2023, and we understand that there haven’t been any existing judgments from tax authorities or courts regarding the practice of managing income and assets through personal corporations.”
Namoo Actors assured, “Under the advice of his tax representative, Lee Joon-gi has diligently strived to fulfill his tax obligations faithfully. As a Korean company and citizen, Namoo Actors and Lee Joon-gi pledge to thoroughly comply with laws and procedures, fulfilling their responsibilities and duties.”