Lee Joon-gi's Side: "900 Million Tax Levy Due to Differences with Tax Authorities... Not Tax Evasion"

"A Decision Completely Different from Previous Tax Practices"

Actor Lee Joon-gi's side stated regarding the tax evasion allegations that "it stems from differences in interpretation and application of tax laws between tax authorities."

Actor Lee Joon-gi. Namoo Actors

Lee Joon-gi's agency, Namoo Actors, released a statement on the 19th saying, "Actor Lee Joon-gi underwent a regular tax audit by the Gangnam Tax Office in 2023 and was assessed taxes. We respected the tax authorities' decision and have paid the full amount of the assessed taxes."

Earlier, Field News reported that the Seoul Gangnam Tax Office launched a tax investigation against Lee Joon-gi and his agency Namoo Actors in the fall of 2023, during which the National Tax Service imposed an additional tax of approximately 900 million KRW.

Regarding this, the agency emphasized, "This taxation issue arose from differences in interpretation and application of tax laws between the tax representative and the tax authorities. It was a decision completely different from previous taxation practices, and there are opposing opinions on its appropriateness not only among tax experts but also in academia."

Concerning the points of contention with the tax authorities during the investigation, the agency explained, "The issue was whether the tax invoice transactions between our company and JJ Entertainment, established by actor Lee Joon-gi, were appropriate, and whether the income should be considered corporate tax for JJ Entertainment or personal income tax for actor Lee Joon-gi. Aside from the difference in perspective on applying corporate tax versus income tax during the investigation, no other tax evasion or tax avoidance related to actor Lee Joon-gi was pointed out."

The agency stated, "We fully respect the results of this tax audit and the tax authorities' decision. However, this matter was never pointed out during the regular tax audits in 2015 and 2019 prior to 2023, and as far as we know, there has been no prior judgment by the tax authorities or courts regarding income and asset management practices through personal corporations. Therefore, cautiously, we have filed an appeal to receive a judgment from the Tax Tribunal again, and the review is currently underway."

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