Actor Kim Seon-ho is currently under suspicion for alleged tax evasion through the use of a family-run corporation, and recent simulation results indicate the potential scale of advertising compensation he may be liable for if these allegations prove true.

On February 4, legal news outlet Lawtalk News estimated that if Kim Seon-ho, as one of Korea’s leading actors, earned approximately 500 million KRW in annual endorsement fees, and if complications arose three months into a year-long contract, he could be required to return around 375 million KRW to advertisers for the remainder of the contract period.

Additionally, advertisers could demand about 100 million KRW to cover losses from disposing of already-filmed teaser videos and photo shoots. As advertising breach penalties are typically set at two to three times the original modeling fee, Kim Seon-ho may face minimum payments of 500 million KRW, possibly reaching up to or exceeding 1 billion KRW, should tax evasion charges be upheld.

However, the same report pointed out that corporations themselves can face risks. If Kim Seon-ho is found not guilty or cleared of all charges, the advertisers or companies that hastily terminated their contracts might in turn face claims for damages due to unjustified contract termination.

Meanwhile, Sports Kyunghyang reported on February 1 that Kim Seon-ho had previously established and managed a sole proprietorship in Yongsan-gu, Seoul, with his parents as executives, sparking widespread controversy.

In response, Fantagio, Kim Seon-ho’s agency, released an official statement on February 4: “Kim Seon-ho established the corporation in January 2024 for the purpose of acting activities and stage production. He received settlement funds through this entity only until February 2025, before signing an exclusive contract with Fantagio.”

Fantagio continued, “We recognized the potential for misunderstanding concerning corporate operations, and confirm that there has been no substantial activity via the corporation for over a year.” Regarding the allegations of tax evasion and the private use of the corporation, they emphasized, “Proactive steps have been taken to correct previously uninformed actions regarding the corporation’s management.”

According to Fantagio, Kim Seon-ho has since returned all corporate credit cards and vehicles, as well as discontinued salary payments to family members. The agency specified that “in addition to the former corporate tax, any outstanding individual income taxes related to corporate activities have also been paid in full.”

From February 2025, settlement payments now go directly to Kim Seon-ho as an individual, making all activities with Fantagio unrelated to the previously registered corporation: “There is no connection between Fantagio’s activities and the former entity,” the agency stated firmly.

Finally, the agency relayed Kim Seon-ho's sentiments, explaining that the actor “deeply regrets having established and maintained the corporation with insufficient understanding of its management and implications.”

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=MHN DB