Yoo Yeon Seok's agency responds to 7 billion KRW (~$5.3 million) tax evasion allegation

14 Mar 2025, 15:01 by Demian09 · allkpop

On March 14, actor Yoo Yeon Seok addressed the controversy surrounding the National Tax Service’s (NTS) notification of a 7 billion KRW (~$5.3 million) tax surcharge, clarifying his stance on the issue.

Yoo's agency, King Kong by Starship, stated, "This issue arose due to differences in the interpretation and application of tax laws between the tax agent and the tax authorities. Currently, we are at the stage of awaiting notification from the authorities following a pre-tax review."

The agency added, "This matter has not been finalized or confirmed yet. We will actively clarify the issue through legitimate procedures regarding the interpretation and application of the law."

The agency further explained, "Yoo Yeon Seok developed and produced YouTube content as part of his entertainment activities and operated a corporation for additional business and catering purposes based on this. The tax authorities have interpreted the corporation's income from the past five years not as corporate tax but as income tax, which led to the imposition of personal income tax on the corporation's reported earnings."

They emphasized, "Yoo Yeon Seok has always prioritized fulfilling his tax obligations diligently and will continue to comply with relevant laws and procedures thoroughly as a responsible citizen."

Earlier that day, CBS No Cut News reported that the NTS had recently notified Yoo Yeon Seok of a hefty 7 billion KRW (about $5.3 million) tax surcharge following a rigorous tax audit, which included income taxes. However, Yoo Yeon Seok has contested the NTS's decision and filed for a pre-tax review in January, which is a procedure where taxpayers can dispute the actions of the tax authorities.

Yoo's representatives stated, "We are currently undergoing the process of recalculating the tax liability through the pre-tax review procedure. Since this matter involves the interpretation and application of tax laws, we will actively clarify the issues related to the legal interpretation and application, and the matter has not been finalized or confirmed yet."

They concluded, expressing confidence that the tax surcharge would be reduced significantly from 7 billion KRW (about $5.3 million) to approximately 3 billion KRW (about $2.3 million) after the clarification process.

Share this article SHARE