JYP Entertainment Addresses Lee Junho Tax Evasion Allegations

On December 26, JYP Entertainment provided an update regarding Lee Junho, confirming his full cooperation with a tax audit initiated by the Seoul Regional Tax Office’s Investigation Division 2. This examination, which took place in September 2023, was part of an irregular, comprehensive tax assessment aimed at corporate-registered artists. The agency reassured the public that this process was not a response to any suspicions of tax evasion.

JYP Entertainment elaborated that Lee Junho, under the guidance of his tax consultant, properly filed his taxes. However, differences in interpretation between the tax authorities and his advisor resulted in additional taxes being owed. This marked Lee Junho’s first non-regular tax audit in 17 years, during which he adhered to all legal requirements and settled any disputed amounts without any intention of tax evasion.

The agency emphasized Lee Junho’s consistent commitment to fulfilling his tax responsibilities since his debut, asserting that there are no current issues regarding his adherence to tax laws.

Lee Junho has also been in the spotlight due to his financial ventures. Notably, in February 2019, he purchased two units in the upscale “The Reverse Cheongdam” officetel located in Cheongdam-dong, Gangnam-gu, Seoul. More recently, in March 2023, he acquired a four-story commercial building in Sinsa-dong, Gangnam-gu for 17.5 billion KRW through his family corporation, JF Company.

This situation has reignited conversations about the importance of diligent tax management for high-income celebrities. Even inadvertent discrepancies can lead to significant reputational harm.

Similar cases illustrate a range of outcomes. For instance, popular webtoon artist Yaongyi (Kim Na-young), known for her work “True Beauty,” faced a tax audit in November 2022, resulting in a fine due to discrepancies. Conversely, celebrated entertainer Yoo Jae-suk underwent a thorough tax audit in June and July, which involved a detailed review of his recent property purchases and income. Yoo’s proactive compliance was well-received by the public, contrasting sharply with other celebrities who often attribute tax issues to “oversights” or “unintentional errors.”

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