Yoo Yeon Seok has lost an appeal seeking to overturn a tax assessment of approximately 3 billion won ($2.1 million) tied to his one-person entertainment agency.
According to an August 4th report by Edaily, South Korea’s Tax Tribunal recently rejected the actor’s case, more than a year after he filed the challenge.
Yoo has managed his entertainment activities through Forever Entertainment, a company he founded and serves as its representative. The National Tax Service concluded that the agency did not provide substantial business support for his career and initially imposed more than 6 billion won in taxes last spring.
The amount was later reduced by roughly half after a pre-assessment review adjusted issues including duplicate taxation. Yoo paid the revised bill before taking the dispute to the tribunal.
The ruling leaves him with the option of pursuing an administrative lawsuit.
King Kong by Starship, the actor’s management agency, said the case stemmed from “differing interpretations of tax law” and noted that the process has not been fully concluded.
The decision is being closely watched as several other Korean stars pursue similar challenges involving celebrity-owned agencies.
Cha Eun Woo has filed an appeal after paying more than 13 billion won, while Lee Joon Gi and Cho Jin Woong are contesting assessments of approximately 900 million won and 1.1 billion won, respectively.
A tax industry source said the details vary by case but noted that the underlying issues are broadly similar, making significantly different outcomes less likely.
Attention is also focused on Lee Ha Nee‘s pending appeal, which initially appeared to be moving in her favor.
Lee was investigated over alleged underreporting through her agency, Hope Project, and paid more than 6 billion won before filing her challenge. She reportedly appeared before a four-member panel late last year and received favorable opinions from three judges.
A later review ended in a 2-2 split, leaving the case unresolved. More than a year and four months have passed since she filed the appeal in April of last year.
Team Hope, Lee’s agency, said it has not received a final written decision.
>> Cha Eun Woo Files Appeal After Paying $9 Million in Back Taxes, Reigniting Tax Dispute
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