Lee Min-ho, Billion-Won Tax Reassessment... "Accounting Error"

Agency Denies Tax Evasion Allegations, "Paying Diligently"

Actor Lee Min-ho (35) was belatedly revealed to have been imposed with additional tax payments by the National Tax Service.

On the 2nd, Aju Business Daily reported that the Seoul Regional Tax Office's Investigation Bureau conducted an irregular (special) tax audit in September 2020 on Lee Min-ho and his agency MYM Entertainment, resulting in additional tax payments amounting to several hundred million won.

Actor Lee Min-ho [Photo by Yonhap News Agency·AFP]

Irregular tax audits are initiated by the National Tax Service when there are suspicions of tax evasion or other allegations against a corporation or individual, unlike regular periodic tax audits.

Lee Min-ho drew a line by stating it was an accounting error unrelated to tax evasion. MYM Entertainment explained on the 2nd, "This issue arose from a difference in interpretation regarding whether the 'compensation for illegal use of portrait rights' is subject to taxation," adding, "During the corporate expense processing, an accounting error occurred, leading to a correction decision and additional taxes, which we have faithfully paid."

They continued, "Both our company and Lee Min-ho have faithfully paid taxes to date and have never been involved in any unsavory incidents."

The National Tax Service recently announced that it conducted comprehensive tax audits on 84 individuals including celebrities, athletes, webtoon artists, and YouTubers. Previously, actors Lee Byung-hun, Kwon Sang-woo, and Kim Tae-hee were imposed with additional tax payments amounting to several hundred million won.

Lee Byung-hun refuted, stating, "This occurred during the normalization of accounting treatment related to the timing difference of advertisement guarantee deposits and the processing of bonuses paid to all employees from the actor’s personal funds as company expenses."

Kim Tae-hee also explained, "This happened because the advertisement model fees that the client was supposed to pay were somewhat delayed around the time her management contract with the former agency expired."

Kwon Sang-woo, who paid an additional tax of 1 billion won, said, "The tax authorities requested explanations regarding the timing of profit and loss recognition, and due to some differences in the timing, I filed an amended report and voluntarily paid the tax."