On February 2, attorney and accountant Kim Myung-gyu wrote on his personal social media, “Before the issue of Cha Eun-woo’s 20 billion won tax reassessment had even cooled down, allegations involving Kim Seon-ho of the same agency surfaced. Since this also involves a one-person or family corporation, a warning alert is likely to be issued across the entertainment industry for the time being.”
He continued, “Suspicions have arisen that a corporation was established at his home address, that corporate cards were used for living expenses, and that false salaries were paid to his parents, who were listed as executives. The agency said, ‘It wasn’t tax evasion—it was created for theater activities, but since there was no business activity, it is being shut down,’ but that explanation is somewhat dangerous. It feels like a self-inflicted mistake.”
According to Kim Myung-gyu, if there truly was no business activity, then there should have been no business expenses. If corporate cards were used and salaries were paid to parents during a year when operations had ceased, that money would be classified under tax law as non-business-related expenses (temporary advances). In that case, the agency itself has opened the door to interpreting the situation as embezzlement or breach of trust through the private use of corporate funds. He explained, “Temporary advances don’t simply end at the level of ‘you borrowed the money, so pay it back.’ If money went out without actual business activity, the National Tax Service will treat it as a bonus paid to the representative and impose taxable income accordingly.”
He also added, “Shutting down a business does not erase the data and records held by the National Tax Service. On the contrary, the closure period can be an ideal opportunity for tax authorities to thoroughly review fund flows. An explanation like ‘we shut down because we weren’t working’ could actually be an invitation saying ‘please come investigate.’” He continued, “Ultimately, the key is substance. They must properly explain whether real theater planning took place through planning documents, meeting records, and work logs, and whether the parents actually performed real work. If they fail to do so, this explanation could escalate the tax evasion suspicion into an embezzlement and breach of trust controversy. I’m concerned that the agency may be making a complacent judgment, thinking, ‘Surely they won’t look at it that far.’”
Kim Seon-ho is currently accused, like Cha Eun-woo, of evading taxes through the operation of a family corporation. It has been reported that he registered a performance planning company at his home address in Yongsan-gu, Seoul, and listed his parents as internal director and auditor. Allegations have also surfaced that after paying salaries to his parents, the money was transferred back to him, further intensifying the controversy.
In response, Fantagio stated on February 1, “The one-person corporation mentioned was established in the past for theater production and related activities and was absolutely not created for intentional tax avoidance or tax evasion,” adding, “After transferring to Fantagio, actual business activities have not been carried out for over a year, and the company is currently in the process of closure in accordance with relevant laws and procedures.”
Sources: Nate
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