As of February 3, it was confirmed that while he was signed with his former agency, Kim Seon-ho had been receiving settlements for his entertainment activities through a one-man corporation named SH2, which he established in January 2024.
The background behind Kim Seon-ho’s decision to create a family-run corporation to receive his earnings has raised suspicions of so-called “tax laundering.” If income were recorded under Kim Seon-ho’s personal name, he would be subject to an income tax rate of up to 49.5%, including local taxes. However, when processed as corporate income, the tax burden is reduced to a maximum corporate tax rate of 19%.
A former agency official stated, “We simply transferred the money to the account designated by the actor.”
This practice is being viewed not as legitimate tax planning but as a clear act of tax avoidance that exploits differences in tax rates. In particular, since the address of Kim Seon-ho’s corporation is the same as his residence, suspicions that it is a paper company are difficult to dismiss. As a result, the funds received through the corporation are highly likely to be regarded as “income diversion” in their entirety.
Attorney Noh Jong-eon of Law Firm Jonjae commented, “Based on the cases of Cha Eun-woo and Kim Seon-ho, income diversion through unregistered corporations is a key factor that undermines transparent settlement and tax management. This is a time when thorough investigations and strict supervision by relevant authorities are more urgently needed than ever to eradicate tax evasion that exploits institutional loopholes.”
Fantagio’s explanation has also been criticized as a self-defeating move.
On February 1, Fantagio stated regarding Kim Seon-ho’s tax evasion allegations, “The one-man corporation was established in the past for theater production and related activities,” adding, “It was absolutely not created with the intention of deliberate tax reduction or evasion.”
However, Kim Seon-ho did not complete the mandatory registration as a “Popular Culture and Arts Planning Business.” Receiving settlements (management revenue) while unregistered constitutes a violation of the Popular Culture and Arts Industry Development Act and may be punishable by up to two years in prison.
Attorney Noh further explained, “Looking at the cases of Cha Eun-woo and Kim Seon-ho, a ‘significant correlation’ is increasingly being revealed in which failure to register as a popular culture and arts planning business goes beyond a simple administrative violation and is abused as a means of tax avoidance by high-income celebrities.”
In response, Fantagio stated, “It is true that after the corporation was established, settlements were temporarily received from the former agency.”
Sources: Daum
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