jasdooit

Actor Kim Seon-ho is facing controversy due to claims that he evaded taxes via a sole proprietorship. After it was confirmed that settlement money was indeed transferred to the company, he repaid family salaries and paid extra personal income tax.

On the 4th, Kim’s agency Fantagio released an official statement saying, “Kim Seon-ho founded the company in January 2024 for his acting endeavors and theater production. Following the company’s creation, funds for activities up until the initiation of a new contract with Fantagio in February 2025 were directed to the company.”

However, the agency stated, “Kim understood that the company’s operations could result in misinterpretations, so it suspended its activities, and for more than a year, no significant actions were taken through the company. Fantagio has directly provided settlement funds to Kim as an individual since the start of the exclusive contract in February 2025.”

The organization mentioned, “As a proactive step to address previous corporate activities carried out due to lack of knowledge, Kim submitted all corporate card transaction records, family wages, and company vehicles. For sums that had been covered by the corporation, he made extra personal income tax payments in addition to the corporate taxes already paid.”

It went on, “Procedures to dissolve the company are in progress and will be completed soon. Kim deeply regrets creating and running the corporation for more than a year without fully grasping its operations. He sincerely apologizes for the confusion.”

Previously, it was disclosed that Kim set up a sole proprietorship for performance planning in January 2024, registered at his home address in Yongsan-gu, Seoul. Kim acted as the CEO, with his parents listed as internal directors and auditors, leading to suspicions of a shell company for tax avoidance.

If the settlement funds are considered personal income, a top income tax rate of 49.5% (plus local taxes) will be applied. On the other hand, if it is viewed as corporate income, the highest corporate tax rate is 19%, resulting in a large difference in tax obligations.

In accompanying reports, a news organization revealed that Kim received compensation for entertainment-related work through the company while still signed with his previous agency.

A representative from the previous agency informed Chosun.com, “The settlement money was transferred to the location specified by the actor.”