Top professional gamer 'Gold medal → military exemption' controversy over shock tax evasion "stock trading under father's name"

*This content was translated by AI.

'Ruler' Park Jae-hyuk, the 2022 Hangzhou Asian Games gold medalist and Korea's top professional gamer, has been embroiled in a controversy over tax evasion.

According to a News 1 report on the 1st, Park Jae-hyuk recently filed a trial with the Tax Tribunal for objection to the National Tax Service's imposition of comprehensive income tax and gift tax, but it was confirmed that he was finally dismissed.

According to the report, Park Jae-hyuk requested that the manager's work expenses paid to his father for about three years from 2018 to 2021 be recognized as necessary expenses for business. In addition, he appealed for unfair imposition of gift tax, saying that stock transactions under his father's name were simple asset management without tax avoidance intentions.

However, the judgment of the tax authorities and the Tax Tribunal was harsh. The Tax Tribunal pointed out, "In the case of professional gamers, the club with an exclusive contract manages all activities and expenses," and did not acknowledge the handling of expenses, saying, "Even if a private manager was needed, there is no objective evidence to prove this."

In addition, the judge considered the issue of stock name trust based on the circumstances in which the transaction income was transferred to his father's account and used, and this is difficult to see as simple asset management. In fact, it was considered to have the purpose of avoiding taxes. Accordingly, the National Tax Service classified the amount as work-related expenses and imposed gift tax based on the name trust.

Earlier, Park Jae-hyuk was heavily criticized for the tax evasion controversy because he benefited from the transfer of sports personnel (exemption from military service) through the Asian Games gold medal.

As the situation spread, Park Jae-hyuk's agency, Supergent, immediately explained. "The funds are the personal assets of players who have already paid 100% of their income tax at the time of occurrence," the agency said, refuting, "This is just administrative inexperience that occurred in the asset management process."

In addition, the agency explained, "Considering the reality that it is difficult for players in the season to do banking in person, my father has entrusted the assets," adding, "There was no actual intention of giving, but the gift tax, which is a fine due to the name trust, has already been paid in full."

The controversy also raises the possibility that it will go beyond simple tax issues to become a player qualification issue. The League of Legends Champions Korea (LCK) regulations specify penalties for those who are investigated for violating tax laws. Currently, the league's management is said to have recognized the relevant information and begun reviewing whether to take disciplinary action.

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*This content was translated by AI.