Ji Chang Wook’s agency has addressed reports that the actor was charged tens of billions of won in additional taxes.
On June 2, Spring Company released an official statement after reports claimed that the Seoul Regional Tax Office’s Investigation Bureau 2 conducted a non regular tax investigation into Ji Chang Wook in March.
According to the report, the actor was later charged tens of billions of won in additional taxes during the tax review process.
In response, the agency apologized for causing concern and denied any intentional wrongdoing.
Spring Company stated, “We deeply apologize for causing concern to many people because of this matter.” The agency continued, “However, we clearly state that there was no intentional omission of income or tax evasion through illegal methods”.
The agency explained that the issue came from a difference in how tax law was interpreted and applied. According to Spring Company, the disagreement was about whether income from Ji Chang Wook’s entertainment activities should be treated as income belonging to the individual actor or to the corporation under the principle of substance over form taxation.
The agency said, “During the recent tax investigation, the company transparently submitted the related documents and sincerely cooperated with the investigation.” It added that there was “a difference of opinion with the tax authorities in the interpretation and application of tax law.”
Spring Company also emphasized that Ji Chang Wook has followed tax rules since his debut in 2008. The agency stated, “Since his debut in 2008, he has had no tax related problems and has strictly followed related laws and procedures.”
Although the agency maintained that the issue was not intentional tax evasion, it said it respects the result of the National Tax Service investigation. Spring Company confirmed that the additional taxes will be paid according to the proper process and “without delay”.
The agency added, “To prevent a similar matter from happening again, we will review our tax and accounting management system more carefully.” It also promised to continue following the law and faithfully fulfilling tax duties.
Recently, several Korean celebrities with one person agencies have also been reported to have undergone tax reviews or been charged additional taxes, including Lee Min Ki, Lee Yi Kyung, Cha Eun Woo, Kim Seon Ho, Lee Ha Nee, and Yoo Yeon Seok.
