Yoo Yeon Seok has successfully had his tax penalty reduced after authorities acknowledged double taxation in his case.
His agency, King Kong by Starship, told Dispatch today that the issue did not stem from any attempt to evade or intentionally avoid taxes, but rather from differing interpretations of how tax laws should be applied.
The initial bill was cut nearly in half through an appeal process. A pre-assessment review confirmed the double taxation and reduced his original 7 billion won (approximately $5.2 million USD) penalty to about 3 billion won (around $2.2 million USD). Yoo Yeon Seok has already paid the revised amount in full. However, he has also filed for a tax tribunal to determine whether the personal income tax imposed was justified.
At the heart of the dispute is income from his company, Forever Entertainment. The National Tax Service (NTS) argues the income should be taxed as personal earnings rather than corporate profits—an interpretation Yoo Yeon Seok plans to challenge. A representative stated, “Yoo Yeon Seok prioritizes fulfilling his tax obligations diligently. Moving forward, he will continue to strictly follow laws and procedures while taking full responsibility.”
Meanwhile, the NTS has recently issued sizable tax bills to other celebrities, including Lee Ha Nee and Cho Jin Woong. Like Yoo, they’ve attributed the penalties to differences in tax law interpretation rather than deliberate tax evasion. The ongoing cases underscore a growing tension between celebrities and tax authorities over how to classify income from personal corporations.
>> Yoo Yeon Seok Faces $4.8 Million Tax Notice from National Tax Service
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