According to reports released on May 13, actor Lee Yi Kyung recently underwent a tax investigation connected to the operation of his one-man entertainment agency.

Authorities are said to have determined that part of Lee Yi Kyung’s personal income had been processed as corporate revenue through the agency structure, potentially reducing the amount of taxes paid. The issue reportedly centered on differences between personal income tax rates and corporate tax rates, leading tax officials to view the arrangement as having possible tax avoidance concerns.

In response, Lee Yi Kyung’s agency Sangyoung ENT released an official statement explaining that the situation resulted from differing interpretations of tax law regarding corporate expense processing.

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The agency stated: “The results of the recent tax audit stemmed from differences in interpretation between the tax authorities and our company regarding standards for expense processing during corporate operations.”

They firmly denied any intentional wrongdoing, adding: “There was absolutely no deliberate omission of income or illegal tax evasion.”

The company also confirmed that Lee Yi Kyung plans to fully pay the imposed taxes without delay while pledging to strengthen future tax management practices.

“We sincerely apologize for causing concern and will do our utmost to prevent similar issues from recurring,” the statement continued. “We will continue to faithfully fulfill our tax obligations while complying with laws and principles.”

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Recently, several Korean entertainment figures including Cha Eun Woo, Kim Seon Ho, Yoo Yeon Seok, and Lee Hanee have also reportedly faced tax reassessments involving personal corporations.

One-man agencies are commonly used in the Korean entertainment industry as a way for celebrities to manage activity-related income and expenses under corporate structures. As similar controversies continue emerging, industry organizations have reportedly called for clearer institutional guidelines regarding taxation and celebrity-owned corporations.

Sources: 네이트 뉴스