Yoo Yeon-seok's Agency Issues Official Statement on 'Double Taxation' & Tax Dispute

Actor Yoo Yeon-seok’s additional tax bill, originally set at approximately 7 billion won, has been reduced to about 3 billion won.

On the 10th, Yoo Yeon-seok's agency, King Kong by Starship, stated, “After actively explaining the situation through proper procedures, we were able to recognize double taxation through a pre-tax review, resulting in a reassessment of the tax amount. Excluding previously paid corporate tax and VAT, Yoo Yeon-seok has paid about 3 billion won in taxes, which has been fully settled.”

The agency explained that Yoo Yeon-seok had established a corporation to develop and produce YouTube content as an extension of his entertainment activities starting in 2015, and he pursued additional business ventures, including the food and beverage industry. “This issue arose from a decision to classify the income as subject to individual income tax rather than corporate tax, leading to the imposition of comprehensive income tax. We are preparing for tax disputes and legal procedures related to the interpretation and application of the law,” the agency added.

Previously, the National Tax Service conducted a rigorous tax investigation on Yoo Yeon-seok, imposing about 7 billion won in taxes, including income tax. Yoo Yeon-seok filed an objection and requested a pre-tax review in January, which is a procedure a taxpayer can follow if they disagree with the tax authorities' actions.

Background: Initial 7 Billion Won Tax Bill

Yoo Yeon-seok, known for his roles in K-dramas like When The Phone Rings and Hospital Playlist, faced a significant tax dispute after the National Tax Service (NTS) imposed a hefty tax bill of approximately 7 billion won on him. The tax was mainly related to income generated from his YouTube content production and side businesses, including ventures in the food and beverage industry, which he had started since 2015.

The reduced tax liability comes after Yoo Yeon-seok went through a rigorous legal process, including a pre-tax review request in January, to resolve the matter. Despite the reduction, Yoo's tax situation remains a reminder of the complexities of taxation for individuals with diversified business activities, especially in industries like entertainment and content creation.

Get the latest on K-pop & K-drama here!