Korea Gas Corporation, 'La Keon-ah Tax Issue' KBL Opponent Effect Suspension Injunction Application "KCC Exerted Influence to Shift Tax Burden"

*This content was translated by AI.

Daegu Korea Gas Corporation of professional basketball filed an injunction application with the court against the KBL, which suspended La Keon-ah's (37) player registration and warned of disciplinary action due to unpaid taxes.

According to reports by NEWS1 and NEWSIS, the Seoul Central District Court Civil Consolidated Division 50 (Presiding Judge Lee Sang-hoon) held a hearing on the application for effect suspension filed by Korea Gas Corporation against the KBL on the 8th.

During the hearing that day, Korea Gas Corporation argued strongly that "Busan KCC exerted influence on the KBL board to unfairly shift the comprehensive income tax that should have been borne by themselves without reasonable cause," asserting the impropriety of the KBL's disciplinary measures. Korea Gas Corporation's representative pointed out that "this disciplinary action not only lacks legitimate purpose but is also an excessively severe punishment with no similar precedent."

Furthermore, they emphasized, "While the KBL claims this is a disciplinary action for failing to comply with board resolutions, such a method would allow for infinite repetitive punishments, amounting to double jeopardy."

In particular, Korea Gas Corporation drew a line stating that if the club pays the taxes demanded by the KBL on their behalf, it could create a risk of 'breach of trust' across the entire organization. They also requested, "As the status of the foreign player becomes unstable before the new season preparations, substantial disadvantages will occur, so a swift decision by the court is necessary."

On the other hand, the KBL side highlighted league fairness and the binding force of board resolutions. The KBL's representative countered, "Despite two board resolutions, Korea Gas Corporation violated them and ultimately shifted the tax burden to player La Keon-ah. This sanction is a legitimate measure to maintain the KBL league and enforce the binding force of board resolutions."

They further explained, "Due to Korea Gas Corporation's violation, concerns about damage to fairness have arisen among other clubs. It is understood that nine out of the 10th clubs knew that the club acquiring La Keon-ah should bear the tax, and several clubs abandoned the acquisition of La Keon-ah due to this tax burden."

After confirming the opposing stances of both sides, the court stated it would review additional written materials submitted by the 29th and then decide whether to grant the injunction, concluding the hearing.

Previously, the KBL had suspended the registration of La Keon-ah's foreign player re-contract submitted by the club, citing Korea Gas Corporation's failure to fulfill La Keon-ah's tax payment obligations.

In May 2024, the KBL board decided not to extend La Keon-ah's special contract as a naturalized player but to allow a general foreign player contract, determining that the income tax for that year would be borne by the final acquiring club.

Accordingly, Korea Gas Corporation, which acquired La Keon-ah for the 2025-2026 season, faced the situation of having to pay the comprehensive income tax for the period from January to June 2024, when La Keon-ah was active with his former team, Busan KCC. When Korea Gas Corporation refused to pay on behalf due to legal issues, the KBL Finance Committee had warned on May 29 that failure to comply would result in the loss of the first-round draft pick in the next season's domestic player draft.

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*This content was translated by AI.