Actor Lee Joon Gi Refutes Allegations Of Tax Evasion Worth 900 Million KRW

His agency has offered a clarification.

Actor Lee Joon Gi‘s agency, Namoo Actors, has released an official statement regarding the actor’s tax investigation.

On March 19, KST, Namoo Actors stated that Lee Joon Gi underwent a regular tax audit by the Gangnam Tax Office in 2023 and paid the ₩900 million KRW (about $617,000 USD) reassessment amount. They clarified that the additional tax assessment resulted from different interpretations and applications of tax laws by Lee’s tax agents and the authorities.

Lee first came under investigation by the National Tax Service in 2023. The investigation was focused on JG Entertainment, a one-man agency established by Lee in 2014 with his father. Though Lee has an exclusive contract with Namoo Actors, his earnings from his projects were processed through JG Entertainment and, hence, were classified as corporate earnings. This allowed Lee to pay a 24% corporate tax on his earnings instead of the whopping 45% personal income tax. Authorities suspected that this system was set up deliberately to reduce Lee’s tax liabilities and hence, a probe was initiated into his financial transactions.

In addition, JG Entertainment acquired a high-end penthouse in Cheongna, Incheon in 2021 for ₩2.95 billion KRW (about $2.02 million USD). It was speculated that the property was being used by Lee Joon Gi as his personal residence, fueling further scrutiny. His representatives vehemently denied this accusation, and Lee was vindicated by the tax authorities after they reviewed the matter and found no legal violations.

Regarding the dispute about Lee’s income being funneled through JG Entertainment, Namoo Actors stated that the authorities had never brought up the issues during past regular tax investigations. There is also no precedence in terms of judgment from the tax authorities or the courts regarding the system of managing income and assets through a private corporation. So, despite having paid the full assessment amount, Lee Joon Gi has filed a request for an examination to hear the decision of the Tax Tribunal once again. The examination is currently in process.

Meanwhile, another popular Korean actor, Yoo Yeon Seok was also recently hit with an unprecedented tax penalty. You can read more about it here:

Actor Yoo Yeon Seok Hit With 7 Billion KRW Penalty For Alleged Tax Evasion