The National Tax Service launched an investigation into Hook Entertainment and CEO Kwon Jin Young.
The National Tax Service is reportedly aware of the personal misappropriation of expenses by Hook and CEO Kwon Jin Young through media reports and is internally checking tax source information such as expenditure details and evidence materials.
On the previous day, entertainment media outlet Dispatch reported that CEO Kwon privately misappropriated about 2.8 billion won as Hook’s corporate card for 6 years from January 2016 to July this year. Among them, 1.8 billion won was spent on luxury goods purchases alone. It was used in various ways, from aesthetic, travel and accommodation, hospital bills to online shopping purchases.
There are also suspicions that CEO Kwon gave the corporate card to her mother and acquaintances, and registered her younger sibling as Hook’s (fake) employee to give this person a salary of over 400 million won and severance pay of 64 million won. Lee Seung Gi team’s corporate card limit was 2 million won, while CEO Kwon’s corporate card limit was reportedly about 80 million won per month.
According to the National Tax Service, if the report is true, corporate card expenses used by CEO Kwon and CEO Kwon’s family are all “expenses unrelated to business”. It is expected that there will be taxation and charge in addition such as additional tax for tax evasion.
Meanwhile, the conflict recently surfaced as singer-actor Lee Seung Gi revealed that he had not received any music revenue settlement from Hook Entertainment after his debut. Lee Seung Gi has notified Hook of the termination of his exclusive contract.