On February 1st, Kim Seon Ho’s agency Fantagio released an official statement, saying, “Kim Seon Ho is currently carrying out activities under an exclusive contract signed in his personal name with Fantagio, and all contracts and activities have faithfully complied with legal and tax procedures.” The agency added that “the former corporation mentioned in reports was established for theater production and related activities, and was not created for the purpose of tax reduction or tax evasion.”
However, the main point of the allegations is not the stated purpose behind the corporation’s establishment, but rather how it was operated. Reports claim that in early 2024, Kim Seon Ho set up a performance planning corporation registered to his residence in Yongsan-gu, Seoul, with his parents serving as inside director and auditor. The controversy centers on allegations that his parents were paid salaries ranging from millions to tens of millions of won despite minimal actual business activity, and that corporate cards were allegedly used for personal living and entertainment expenses.
While Fantagio stated that the corporation is currently in the process of being dissolved, it did not explain why closure was necessary if no wrongdoing had occurred, further fueling suspicion.
In celebrity-related tax disputes, one of the most closely scrutinized issues by the National Tax Service is so-called “phantom labor costs.” When relatives are listed as executives or employees and paid salaries, tax authorities assess whether actual work was performed. If work records and duties are unclear, such salaries may not be recognized as legitimate corporate expenses and can be reclassified as personal income for the company’s head, resulting in additional taxes and penalties.
Similar cases have surfaced in the past. Broadcaster Park Na Rae previously faced allegations involving family-linked corporate management and improper expense handling amid conflicts with former managers. More recently, Fantagio artist Cha Eun Woo also came under scrutiny due to a one-person agency structure tied to family members, with speculation escalating to the possibility of tax evasion involving tens of billions of won.
Experts note that while establishing a corporation itself is not illegal, issues involving salaries paid to relatives and the use of corporate funds for personal expenses are among the most sensitive areas in tax audits. They emphasize that this is not a matter that can be resolved through a brief explanation alone, but one that requires transparent disclosure backed by concrete documentation.
Kim Seon Ho, who successfully returned to the spotlight following a period of self-reflection after a personal controversy in 2021—most notably through the film The Childe and the Netflix series Can This Love Be Translated?—now faces concerns that this latest controversy could once again weigh heavily on the momentum of his hard-earned comeback if it continues to unfold.
Sources: Daum
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