Actor Lee Yi-kyung has been ordered to pay additional taxes following a tax audit of his independent agency, according to reports Wednesday.

A handful of Korean celebrities, including K-pop star Cha Eun-woo and actor Lee Ha-nee, have operated independent agencies — small corporations consisting solely of themselves as artists — while still maintaining representation in their original agencies. These independent agencies allow income from entertainment activities to be processed as corporate revenue, thereby reducing tax burdens, as the corporate tax rate is lower than the personal income tax rate.


Cha and Lee Ha-nee have also recently been notified of large additional tax assessments related to the operation of their independent corporations.

The amount of the additional tax assessment for Lee Yi-kyung has not been disclosed.

“We respect the results of the National Tax Service’s investigation,” Sangyoung Entertainment, Lee Yi-kyung's original agency, said Wednesday. “Lee plans to pay the additional taxes without delay in accordance with the relevant procedures.”

“Since his debut, Lee Yi-kyung has always complied with tax laws and faithfully fulfilled his tax obligations,” the agency said. “The additional tax assessment was not the result of intentional income concealment or tax evasion.”

The agency added that the issue stemmed from differences in interpretation between tax authorities and the company regarding standards for processing expenses during the operation of the corporation.

“We will more thoroughly review our tax and accounting management systems to prevent similar issues from occurring in the future,” Sangyoung Entertainment said.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HYEON YE-SEUL [kim.jiye@joongang.co.kr]