Acknowledges Single-Person Corporation Establishment and Settlement Payment Receipt
Kim Sun-ho's agency Fantagio officially acknowledged through a statement that Kim Sun-ho established a corporation in January 2024 for the purpose of acting activities and performance production. The corporation was established at his residence address in Yongsan-gu, Seoul, with Kim Sun-ho serving as representative director and his parents serving as board members and auditors. According to the agency, settlement payments for Kim Sun-ho's entertainment activities were directed to the corporation until a new contract began in February 2025.
This structure drew criticism for potentially exploiting the tax rate difference, where corporate income is subject to a maximum corporate tax of 19%, while the same income classified as personal income would be subject to income tax of up to 49.5% including local taxes. The former agency explained that settlement payments were deposited into the corporation at Kim Sun-ho's request.
Agency's Clarification and Measures Regarding Tax Evasion Allegations
Fantagio announced that Kim Sun-ho recognized that operating the corporation could cause misunderstandings and discontinued its operations. No substantive activities have been conducted through the corporation for over a year, and since February 2025, settlement payments have been made directly to the actor individually through an exclusive contract with Fantagio, the agency stated.
As a proactive measure to correct the corporation operation he was unaware of, Kim Sun-ho has returned multiple items. He returned all corporate credit card usage records, family salaries, and corporate vehicles, and paid additional personal income taxes on top of the previously paid corporate taxes for amounts previously settled through the corporation. The corporation closure process is currently underway and administrative procedures are expected to be completed soon.
Background of Controversy and Issues with Tax Structure
The controversy surrounding the single-person corporation establishment stems from the tax rate difference on settlement payments. While income earned by individuals from entertainment activities should be subject to personal income tax, processing through a corporation allows for paying only the lower corporate tax. This structure, combined with appointing his parents as board members and auditors, raised suspicions that it was a shell company intended for tax evasion.
When classified as a corporation, only a maximum of 19% in taxes is required, but when correctly classified as personal income, income tax of up to 49.5% can be imposed, resulting in a significant difference in tax burden. This difference in tax rate structure became the core of the controversy, and with the agency's clarification and additional tax payments, legal issues appear to be moving toward resolution.
Deteriorating Public Opinion and Uncertainty Surrounding Upcoming Projects
Despite apologizing for the tax evasion allegations, it is difficult for public sentiment to quickly shift. Several projects are scheduled for release, but have entered emergency mode due to the impact of the controversy. He is working alongside Suzy in the Disney+ drama 'Mesmerized,' and the drama 'Unfriend' is also scheduled for release. Additionally, the opening of the play 'Secret Passage' is scheduled for the 13th, and he is set to appear in the tvN drama 'Please Look After Minister.'
Kim Sun-ho has faced difficulties from controversies before. In 2021, while gaining popularity through the tvN drama 'Hometown's Embrace,' he became embroiled in a private life controversy, issued an apology, and withdrew from several programs. After returning to work and continuing his popularity with Netflix's 'Can This Love Be Translated?', he has once again become caught up in controversy.
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