On March 14, the agency of Yoo Yeon-seok, King Kong by Starship, responded to previous reports that the National Tax Service requested the actor to pay an additionally 7 billion won (approx. 4.8 million USD) in taxes.
In particular, the agency told the media, “This issue arose from differences of opinion between tax agents and tax authorities regarding the interpretation and application of tax laws, and we are currently awaiting notification from the tax authorities after undergoing a pre-tax appropriateness review“, adding, “This is not a matter that has been finally confirmed or notified, and we plan to actively clarify issues related to the interpretation and application of the law through due process.”
They also explained the missing tax amount by stating, “This issue occurred when actor Yoo Yeon-seok developed and produced YouTube content as an extension of his entertainment activities and operated a corporation for the past five years as a side business and restaurant business based on this, and the tax authorities interpreted this as subject to income tax, not corporate tax, so individual income tax was imposed on the portion that his tax agent had previously reported as corporate income.”
Finally, the agency said, “Actor Yoo Yeon-seok has always made faithful tax payment obligations his top priority, and as a citizen, he will continue to thoroughly comply with relevant laws and procedures and fulfill his responsibilities.”
Meanwhile, according to a CBS No Cut News investigation on March 14, the National Tax Service conducted an intensive tax audit on actor Yoo Yeon-seok and recently notified him of the additional tax assessment. The amount surpasses the previously reported reassessment issued to actress Honey Lee.
Similar to Honey Lee, Yoo Yeon-seok established his own entertainment agency, Forever Entertainment, where the NTS reportedly found tax compliance issues, leading to the audit.
However, Yoo Yeon-seok has formally contested the tax reassessment and filed for a pre-assessment review in January. This process allows taxpayers to challenge tax authorities’ decisions before the final ruling, with internal and external experts participating in the deliberation.
Yoo Yeon-seok’s representatives stated that they intend to actively present evidence during the review process to rectify the assessed amount. They also indicated that the 7 billion won tax bill could be significantly reduced to around 3 billion won.
In an official statement, his agency explained, “We are currently undergoing the pre-assessment review process, during which the tax amount will be recalculated. This matter involves legal interpretations and applications of tax laws, and we will follow the proper legal procedures to provide an explanation. The final amount has not yet been confirmed or enforced.”
The statement further emphasized, “Actor Yoo Yeon-seok has always fulfilled his tax obligations diligently and will continue to do so as a responsible citizen.”
Recently, tax evasion allegations involving celebrities have been making headlines. Honey Lee was also reportedly hit with a 6 billion won tax reassessment. Her representatives, however, clarified that the issue stemmed from differences in legal interpretations regarding whether an artist’s income should be taxed under corporate or personal income tax laws. The police are currently investigating a public complaint requesting an inquiry into her alleged tax evasion.
Sources: Kbizoom