"Separate Livelihoods as a Couple"..."But You Live Together, Don't You?"

Appeals Trial Over 12.3 Billion Won Tax Assessment for LG Group’s Son-in-Law
Dispute Between Yoon Kwan and the Court Over Tax Liability

In the appeals trial regarding the cancellation of a comprehensive income tax assessment of approximately 12.3 billion won imposed by the Gangnam Tax Office, Yoon Kwan, CEO of BlueRun Ventures (BRV) and the eldest son-in-law of the LG Group, argued that both he and Koo Yeonkyung, CEO of the LG Welfare Foundation, maintained independent livelihoods and were therefore not subject to taxation. However, the court questioned this claim, stating, "It is difficult to accept that a married couple living together maintained separate livelihoods."

CEO Yoon Emphasizes Economic Separation

On October 17, during a hearing at the Seoul High Court Administrative Division 1-1 (Presiding Judges Yoon Seungeun, Cha Moonho, and Park Hyungjun), Yoon's legal team emphasized the couple's economic separation to support their claim that Yoon was not a domestic resident. They stated, "The family's living expenses were covered by Koo, his wife," and added, "Since CEO Yoon frequently traveled between Korea and abroad and was engaged in significant professional activities overseas, there was an aspect of economic separation."

Questions from the Court and Tax Authorities

However, the court and tax authorities expressed skepticism about these arguments. The court responded, "If a spouse makes economic expenditures, it is considered that they share a livelihood," and questioned, "Is my understanding of the concept of livelihood incorrect, given that the couple is not living apart?" A representative from the Gangnam Tax Office also pointed out, "If the determination of livelihood is based solely on economic expenditures, wealthy individuals could arbitrarily separate their residences," and further questioned, "How can CEO Yoon and CEO Koo, who are raising minor children together, claim to maintain separate livelihoods?" Yoon's legal team replied, "We will reorganize and submit our opinion."

"Submit Records of CEO Yoon's Overseas Stays"

The Gangnam Tax Office imposed a comprehensive income tax of approximately 12.3 billion won on CEO Yoon in 2021, claiming that he failed to pay taxes on dividend income of over 22.1 billion won received between 2016 and 2020. CEO Yoon filed a lawsuit challenging the tax assessment, but the court of first instance ruled that the taxation was justified, citing △ the family's residence in Korea, △ significant income generation within Korea, and △ involvement in the management of a Korean corporation as grounds for determining that the center of Yoon's personal and economic interests was domestic.

The appellate court ordered Yoon's legal team to provide an explanation regarding Vivian Koo, who acquired a 60% stake in BRV Cayman in 2015, and to submit detailed records of Yoon's overseas business trips and stays during the taxation period.

Lee Sangwoo, Legal Times Reporter

※This article is based on content supplied by Law Times.

This content was produced with the assistance of AI translation services.