Ji Chang Wook, Cha Eun Woo, and Kim Seon Ho have all recently been connected to tax investigations or reassessments. In each case, the central issue reportedly concerns how income was processed through one-person agencies or family-run corporations.

The artists and their agencies have emphasized that the controversies stem from differences in how tax regulations were interpreted, rather than deliberate tax evasion.

Ji Chang Wook Reportedly Assessed Tens of Billions of Won

Ji Chang Wook recently became the latest celebrity drawn into the issue. According to a June 2 report by Field News, the Seoul Regional Tax Office conducted a special tax investigation into the actor around March and imposed additional taxes reportedly worth tens of billions of won.

The authorities were said to have examined whether income had been improperly handled through a private corporation connected to the actor. His agency, Spring Company, apologized for causing concern but denied intentional wrongdoing. “There was no deliberate omission of income or tax evasion through illegal methods,” the agency stated.

It explained that Ji Chang Wook and the tax authorities held different views regarding the application and interpretation of tax law. The company added that it respected the investigation’s outcome and intended to pay the assessed amount without delay.

Cha Eun Woo’s Case Involved a Much Larger Figure

Cha Eun Woo faced a similar controversy earlier this year. In January, reports claimed that he had received a tax reassessment notice worth approximately 20 billion won in connection with income distributed through a one-person agency registered under his mother’s name.

Fantagio was reportedly assessed an additional 8.2 billion won separately. Cha Eun Woo’s side filed a pre-assessment review request and began procedures to explain its position. According to Fantagio, the total amount he had paid was approximately 13 billion won.

As criticism intensified, Cha Eun Woo posted a lengthy apology. “If there were areas I failed to examine carefully enough, the responsibility also lies with me,” he wrote.

Kim Seon Ho Also Addressed Family Company Concerns

One month later, Kim Seon Ho was reportedly investigated over income processing through a family corporation. His side later announced that the company was undergoing closure procedures. The actor said he had taken steps to correct the way the corporation had been managed, including returning corporate vehicles and reviewing past corporate card use and family salary payments.

Fantagio subsequently issued a broader apology over the tax controversies involving the company and its artists. The agency acknowledged shortcomings in management and promised to strengthen its internal accounting, legal review, and decision-making systems.

Tax experts cited in the report pointed to the principle of substance over form under Article 14 of South Korea’s Framework Act on National Taxes. Establishing a private company is legal. However, when a corporation does not operate as a genuinely independent business, tax authorities may determine that its income should instead be treated as the individual’s personal earnings. Investigators may examine whether the company maintains an office, hires employees, signs contracts independently, and manages funds separately from the celebrity.

Sources: Daum | TV리포트