Ji Chang-wook hit by tax probe

Ji Chang-wook hit by tax probe
Ji Chang-wook. Image: Spring Company via The Korea Herald

Actor Ji Chang-wook has been assessed billions of won in additional taxes following an audit by South Korea’s National Tax Service, the latest in a series of high-profile tax disputes involving popular Korean entertainers, including Cha Eun-woo and Kim Seon-ho.

According to local reports published Tuesday, June 2, the Seoul Regional Tax Office imposed additional taxes after allegedly identifying issues related to underreported or improperly handled taxes during a nonroutine audit conducted around March. Nonroutine investigations are typically launched when authorities suspect potential tax evasion or other irregularities involving either corporations or individuals.

Ji has been represented by Spring Company, an entertainment management firm established in 2023 by his longtime manager and high school friend. The actor signed an exclusive contract with the agency following its launch.

The tax assessment comes as Ji’s career is reaching new heights. The actor made his Cannes debut in May with acclaimed director Yeon Sang-ho’s “Colony” and is set for a busy slate of high-profile projects in the coming years.

In the third quarter of the year, Ji is slated to star opposite Son Ye-jin in the Netflix fantasy historical drama “Scandal,” followed by the romantic comedy “Human x Gumiho” alongside Jun Ji-hyun in 2027. He is also attached to Disney+’s first Korean-Japanese romantic comedy “Merry Berry Love,” co-starring Japanese actor Mio Imada, though a release date has yet to be announced.

It remains unclear whether the tax controversy will affect Ji’s career momentum or impact the production schedules of his upcoming projects.

One-person corporations used by Korean celebrities have been under growing public scrutiny. However, unlike the recent high-profile tax controversies of Cha Eun-woo and Kim Seon-ho, Ji’s company appears to function as an active management agency of multiple artists. The central issue in his case is whether the income and expenses in question should be attributed to his agency or treated as Ji’s personal income under Korean tax law.

Spring Company issued a statement Tuesday apologizing for causing concern while firmly denying any intentional tax evasion or income concealment.

“During the recent tax audit, the company faithfully cooperated with the investigation and transparently submitted all relevant materials,” the agency said.

“In the process, we confirmed that there was a difference in interpretation between the tax authorities and our side regarding the application of tax law, specifically whether income generated through the actor’s entertainment activities should, under the principle of substance over form, be attributed to the individual or to the corporation.”

The company further emphasized that Ji has consistently sought to comply with tax regulations since making his debut in 2008.

“(We) respect the findings of the National Tax Service and will pay the assessed additional taxes promptly in accordance with the required procedures.”

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