Will Kim Sunho Face the Same Fate? Similarities Found with "Cha Eunwoo Method"

Appointing Parents to the Board and Transferring Salaries Back
Corporate Address Matches Residence
Suspicions Raised Over Existence of a Shell Company

Actor Kim Sunho was reported by The Sports Kyunghyang on February 1 to have operated a separate corporation with his family members as executives, distributing income. Public attention is focused on the repeated use of such structures, especially since Cha Eunwoo, another leading actor from the same agency Fantagio, was recently notified of a large tax assessment.

Actor Kim Sunho was reported by The Sports Kyunghyang on the 1st to have operated a separate corporation with family members as executives, distributing income. Fantagio

According to the report, in January of last year, Kim Sunho established a performance planning company at his residence in Yongsan-gu, Seoul, and was listed as the CEO. The corporation registered a variety of business purposes, including performance planning, advertising and content production, broadcasting production and distribution, and real estate sales and leasing. However, popular arts and culture planning was not included among its business activities.

The board of directors of this company consists solely of Kim Sunho's parents. The absence of external management is interpreted as a structure designed to allow flexible movement of corporate funds within the family. In fact, there is evidence that salaries ranging from several million to tens of millions of won were paid to his parents, and the corresponding amounts were then transferred back to Kim Sunho. Additionally, it was confirmed that living and entertainment expenses were paid with the corporate card, and a vehicle was registered and used under the corporation's name.

The fact that the corporation's address is the same as Kim Sunho's residence adds weight to suspicions that it is a "paper company" with no real business activity. Tax experts note that by appointing family members as executives and paying them salaries through the corporation, one can distribute income and avoid gift taxes, as well as reduce taxes by processing expenses through the corporation.

The timing of Kim Sunho's establishment of the corporation is also noteworthy. The company was set up while renegotiations with his former agency were underway and about a year before his transfer to Fantagio. It is known that Kim Sunho later signed an exclusive contract with Fantagio and received a signing bonus of around 2 billion won. Experts suggest that this may have been a preemptive measure to receive the large signing bonus through the corporation rather than as an individual.

This method is structurally similar to the recent case involving Cha Eunwoo. Cha Eunwoo was notified by the National Tax Service of an additional tax assessment of about 20 billion won for distributing income through a corporation under his mother's name, and Fantagio was also assessed additional taxes in the billions of won. Cha Eunwoo's side has stated, "The additional tax is not yet finalized, and we are taking legal action."

Experts point out that if the allegations against Kim Sunho are confirmed, it could be seen as a repeated settlement structure at the agency level rather than an individual deviation. If Fantagio knowingly paid signing and settlement fees to the corporation, this could lead to criminal tax charges and liability for breach of duty.

Fantagio acknowledged the existence of Kim Sunho's corporation but claimed, "There has been no substantial operation for over a year, and we are currently in the process of closing the business after recognizing potential issues." They further explained, "The corporation was established not for tax-saving purposes, but with future plans for theater activities in mind."