*This content was translated by AI.
Amid the recent active establishment of single-person agencies and family corporations in the entertainment industry, suspicions of unregistered operations and high tax collection have been raised, causing a stir.
The most shocking case is singer and actor Cha Eun-woo. It has been reported that Cha Eun-woo was recently notified of more than 20 billion won in tax collection by the National Tax Service.
According to a media outlet earlier, the National Tax Service reported that Cha Eun-woo had tax evasion through a corporation established by his mother, and notified Cha Eun-woo of an additional income tax of more than 20 billion won. Cha Eun-woo has been working in a structure in which his agency Fantagio and a corporation established by his mother sign a service contract to support entertainment activities, and the profits are reportedly divided and attributed to Fantagio, the corporation, and Cha Eun-woo.
The National Tax Service believes that the corporation is inappropriate for performing entertainment management, and sees it as a trick to disperse income through a non-substantial "paper company." Cha Eun-woo said that he was applied with a lower corporate tax rate of more than 20 percentage points instead of an income tax rate of 45 percent by setting up a separate family company in addition to his existing agency Fantagio to sign a service contract.
In this regard, the agency Fantagio said, "The main issue is whether the corporation established by Cha Eun-woo's mother is subject to real taxation," adding, "It is not currently finalized and announced, and we will actively explain issues related to legal interpretation and application in accordance with due process."
There is also a series of hardships due to ignorance of administrative procedures. Stars who were found to have been running the company without registration of the pop culture and arts planning business were also on the investigation list.
Actor Hwang Jung-eum apologized directly for the unregistered status of a single agency. In a recent statement, he said, "Hunminjeongeum Entertainment is a one-person company and has been provided with services from existing agencies, so I thought registration was not necessary," adding, "Since November, we have been in the process of registering for the pop culture and arts planning business, and I have completed all the training courses necessary for registration on November 5."
Park Na-rae, who has been embroiled in controversy over alleged managerial power abuse, was also found to have been operated without official registration of a single-person agency, An Park, which has also sparked controversy.
Singer CL was reportedly handed over to the prosecution on charges of operating Vericherry, a one-man agency founded in 2020, without registration from the Ministry of Culture, Sports and Tourism. On the other hand, it was confirmed that Kang Dong-won, Sung Si-kyung, and Song Ga-in, who had the same suspicion, were cleared of charges as a result of the investigation. However, the representatives of their agencies and corporations were sent.
In addition, a number of stars, including Ok Joo-hyun, Song Kang-ho, Seol Kyung-gu, Choi Soo-jong, Lee Ji-hye, and Barr, were found to have operated one-man agencies unregistered for several months or more than 10 years, causing a stir. The Popular Culture and Arts Industry Development Act stipulates imprisonment for up to two years or a fine of up to 20 million won for unregistered operation. As the controversy intensified, the Ministry of Culture, Sports and Tourism began to reorganize the system by operating the "Japanese Registration Period for Popular Culture and Arts Planning Business".
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*This content was translated by AI.
