Recently, South Korean actor Kim Seon-ho’s popularity soared again thanks to his new drama ‘How to Translate Love?’, but unexpectedly, he was accused — like his agency-mate and ‘face genius’ Cha Eun-woo — of suspected tax evasion through a family-run personal company. His agency, Fantagio, responded on the 2nd, stressing that Kim Seon-ho’s personal company is in the process of being dissolved, but the statement only added fuel to the fire. Korean media interviewed accountants, lawyers, and other professionals to analyze the case, who believe Kim Seon-ho’s current method of evading taxes may also involve embezzlement and breach of trust.
Media outlets such as ‘Sports Kyunghyang’ and ‘STAR NEWS’ enlisted lawyers, tax consultants, and accountants to examine the case, and found the key evidence: when Kim Seon-ho was still with his previous agency, he set up the personal company ‘SHDU’ through family members in January 2024, and used it to receive entertainment income. If he had reported the income under his own name, including local taxes, he would have had to pay up to 49.5% in personal income tax, but by handling it through the company, he could enjoy a corporate tax rate capped at 19%.
Fantagio clarified that Kim Seon-ho originally established ‘SHDU’ for activities related to stage plays, but as the company is no longer operating, it would be dissolved. However, the key reason Kim Seon-ho is suspected of tax evasion via a personal company lies in the fact that the address for ‘SHDU’ is actually Kim Seon-ho's own home, with his parents listed as directors and other high-ranking positions. The company also could not provide concrete proposals, meeting minutes, or work logs as proof of substantial business activities.
As a result, lawyer Kim Myung-gyu (phonetic) opined that a company without normal business activities should not have business-related expenses. Yet, Kim Seon-ho used the company credit card for living expenses, transferred money to his parents under the guise of ‘executive salaries,’ and moved funds back to his own account. These cash flows would be considered ‘non-business related expenses’ from an accounting perspective, and could even be treated as embezzlement or misappropriation of company funds, constituting breach of trust. Moreover, ‘SHDU’ did not register as a ‘popular culture and arts planning business’ as required, further deepening doubts that the company was set up solely for tax evasion.
Source: TVBS News