K-star Yoo Yeon-seok hit with $6.4 million tax bill amid scrutiny over celebrity finances
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South Korean actor Yoo Yeon-seok has been slapped with a tax bill of about seven billion won (S$6.4 million).
PHOTO: YOO_YEONSEOK/INSTAGRAM
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SEOUL – Hot off the heels of hit romance drama When The Phone Rings (2024 to 2025), South Korean actor Yoo Yeon-seok has joined a list of celebrities facing hefty tax bills from the authorities.
The 40-year-old star, also known for starring in K-dramas such as the Hospital Playlist series (2020 to 2021), was recently slapped with an additional tax bill of about seven billion won (S$6.4 million), reportedly the largest imposed on a South Korean celebrity.
In response to mounting criticism and allegations of tax evasion, Yoo’s agency, KingKong by Starship Entertainment, issued a statement on March 14. It said the tax assessment results from differences “in the way (Yoo’s) tax representative and the tax authorities have interpreted and applied tax law”.
It further noted: “This income tax assessment has not been finalised or officially notified, and we plan to actively clarify the points of contention regarding the interpretation and application of the law through the proper legal procedures.”
In February, actress Lee Ha-nee, 42, known for films like Extreme Job (2019), was hit with a six billion won tax assessment. In 2024, My Name (2021) actor Park Hee-soon, 55, underwent a tax investigation by the Seoul Regional Tax Office, resulting in an additional tax bill of approximately 800 million won.
This slew of tax issues has drawn scrutiny to celebrities’ use of personal corporations – often with themselves as chief executives – to minimise their tax liabilities.
Each of the actors operates a personal corporation despite being affiliated with other agencies. They are the chief executives of Forever Entertainment, Hanee and Twopark Playground respectively.
Under South Korean law, corporations are generally taxed at lower rates than individuals, with higher thresholds for taxable income, making corporate structures more advantageous for tax purposes.
In addition, expenses related to maintenance, vehicle upkeep and other operations can be deducted as business costs, hence reducing the owner’s taxable income.
The celebrities contend that the disputes stem from differing interpretations of tax law rather than deliberate tax evasion, with Park denying the allegations in an official statement. He said: “This tax assessment arose during the process between the tax authorities and my tax representative, and has no direct connection to my legal obligations as an actor.”
Lee similarly defended her position, stating: “The additional tax resulted from a difference in perspective between the tax authorities and my tax representative, and I have paid the full amount.”
But public sentiment has grown increasingly critical as suspicions mount over high-profile figures allegedly avoiding billions in taxes.
Criticism has been mounting over Yoo’s appearance in Seoul Broadcasting System’s (SBS) new series Shinyirang Law Office, set to premiere in August, in which he plays a lawyer who punishes evil. SBS has yet to release an official statement regarding Yoo’s involvement in the series.
Yoo is in the midst of an Asia fan meeting tour, which will stop in Singapore at The Theatre at Mediacorp on March 27. THE KOREA HERALD/ASIA NEWS NETWORK
