According to confirmation on February 3 of this newspaper, during his time under his former management company (Salt Entertainment), actor Kim Seon Ho received payment for artistic activities through a one-person company named "SH2", established in January 2024.
The reason Kim Seon Ho established a family legal entity to receive payment is suspected of being aimed at "tax evasion". If income is calculated directly under Kim Seon Ho's personal name, he will have to pay income tax (including local tax) with the highest rate of up to 49.5%.
Meanwhile, if handled in the form of income of legal entities, the maximum corporate tax rate is only 19%, creating a great tax advantage.
A person related to the old management company said: "We only transfer money to the (account) that the actors requested.
According to the newspaper, this is not simply tax savings, but is considered a clear act of tax evasion to take advantage of the tax rate difference. Especially, when Kim Seon Ho's legal address coincides with his residence, the suspicion that this is a "ghost company" is even more difficult to erase.
Therefore, the amount received through this legal entity is very likely to be considered as the entire redirected income (income evasion).
Representative lawyer Noh Jong Eon (Jonjae Law Firm) commented: "Based on the cases of Cha Eun Woo and Kim Seon Ho, the redirection of income through unregistered legal entities is a core factor that invalidates transparency in payment and tax management.
To stop tax evasion taking advantage of legal loopholes, there is now more than ever a need for a comprehensive investigation and close supervision from functional agencies.
Sports Kyunghyang commented that the previous explanation of Fantagio - Kim Seon Ho's current management company - was also considered "self-inflicted".
Previously, on February 1, Fantagio announced regarding Kim Seon Ho's tax evasion suspicion that: "A legal entity established in the past to serve production and activities related to theatrical drama is absolutely not a legal entity established for the purpose of intentional thrift or tax evasion".
However, Kim Seon Ho has not registered for the "public art - entertainment planning" business model, which is a mandatory procedure. Receiving payment (managed revenue) in unregistered condition may constitute a violation of the Law on the Development of the Public Art and Culture Industry, with a sentence of up to 2 years in prison.
Lawyer Noh added: "From the cases of Cha Eun Woo and Kim Seon Ho, a "remarkable connection" is increasingly emerging, showing that not registering for a public entertainment industry is not only a simple administrative violation, but is being exploited as a tax evasion tool for high-income artists.
Regarding this issue, Fantagio said: "After the legal entity was established, it is true that there was a short time when payment was received (from the old management company)".
Artists of Fantagio company - Cha Eun Woo and Kim Seon Ho - are currently becoming the focus of public opinion when they are both involved in tax evasion allegations. However, while the tax authorities have announced the recovery of 20 billion won of Cha Eun Woo's tax, they have not made any announcements about Kim Seon Ho.
