“Can This Love Be Translated?” star Kim Seon-ho is now at the center of a growing controversy of tax evasion. After reports surfaced about his family-linked company, he has taken “preemptive measures”—paying additional income taxes, returning his family’s salary payments and corporate credit card expenses, and closing his private company. But will these steps be enough to clear his name, or will new problems surface? Keep reading to understand the facts, the stakes, and what experts say.
Kim Seon Ho’s Tax Controversy Explained: What Happens Next?
Following Cha Eun Woo’s 20 billion KRW tax dispute and a paper company accusation, another talent under Fantagio Entertainment, Kim Seon Ho, is facing allegations of tax evasion and a paper company. Fantagio has denied the allegations, yet this case marks the second nearly identical accusation against an artist under Fantagio in a short period.
Kim Seon Ho’s Tax Evasion Allegations: Timeline
- February 1, 2026: Multiple media outlets reported that Kim Seon-ho ran a one-person corporation with his parents listed as its executives.
- February 3, 2026: Fantagio explained that Kim Seon-ho established his one-person company in 2024. At that time, he was still negotiating his contract with his former agency, SALT Entertainment. According to Fantagio, the actor received settlement payments for his theater and theater-related work.
- February 4, 2026: Fantagio released an official statement regarding Kim Seon-ho’s actions to pay additional personal income tax, return all company assets, and officially file for the company’s dissolution process.
Here is what’s being alleged and what’s confirmed so far.
Kim Seon-Ho’s “SH Do” Company
Company Establishment
According to Sports Kyunghyang, Kim Seon-ho established “SH2” / “SH Do,” a one-person company for his theater-performance-related work, in January 2024. The company was registered at his residential address in the Yongsan district, Seoul.
Business Purposes
“SH Do” was listed with various business purposes, such as:
- advertising agency services
- advertising media sales
- media content creation
- broadcast program production and distribution,
- medical manufacturing,
- wholesale
- retail
- trade and design operations
- personnel and service consulting
- real estate buying and renting
However, the company is said to be engaged in entertainment, but it was not correctly registered as a “Popular Culture and Arts Planning Business,” raising legal concerns.
Family Members in Management
According to reports, his parents held official executive positions. His father was the internal director, and his mother was the auditor. This structure raised questions for tax authorities.
Payment Methods & Asset Registrations
- Monthly salary payments: His parents allegedly received monthly salaries ranging from hundreds to millions of won. After receiving these payments, the parents allegedly transferred the exact amounts back to him each month. The money from the corporation was sent to his parents, then to Kim. No value added in this transaction.
- Credit card usage: His parents allegedly used company credit cards for personal purchases and expenses, including entertainment and living costs. If these weren’t business expenses, their household costs were allegedly spent as company expenses.
- Vehicle registration: The Genesis GV80 Kim drives was registered under the corporation’s name, not his personally. This kept an asset off his personal record while the company paid maintenance and insurance.
Why does this matter?
By increasing corporate expenses, the company’s taxable income will decrease. Lower corporate profits mean lower corporate taxes owed.
Kim allegedly reduced his tax burden by routing income through his parents before returning it to him. This describes illegal income manipulation disguised as a corporate structure, not a lawful tax reduction.
The Operation Duration of “SH Do”
“SH Do” operated from January 2024 to February 2025.
After recognizing that the company could cause misunderstandings, he halted the company’s operations in February 2025, approximately one year after they began.
Kim signed with Fantagio in March 2025 under a personal exclusive contract. The one-person corporation is now in the process of official dissolution.
According to Fantagio, for more than a year before February 4, 2026, there has been no significant business activity conducted through the company, “SH DO.” The agency emphasized that since February 2025, all settlement payments have been made directly to Kim as an individual.
Why Kim Seon Ho’s One-Person Company Is a Problem?
According to reports, Kim received settlement payments from the theater and theater-related works for about a year through his personal company, “S.H. Do,” which he established in January 2024 while still under his previous agency.
On February 3, Fantagio told OSEN, “It is true that after establishing the company in January 2024, he temporarily received settlement payments from his previous agency through that entity.”
Kim’s former agency also confirmed the settlement. They said, “We only deposited the settlement funds into the account requested by the actor.”
Later, rumors surfaced that Kim received a signing bonus of approximately 2 billion KRW (about 1.5 million USD).
So, what makes Kim’s one-person company a problem?
The answer is the tax rate gap.
In South Korea, personal income is taxed at higher rates than corporate income.
When entertainers earn money directly, they pay individual income tax rates of 6%-up to 45-49.5%.
When money flows through a corporation, it’s taxed at corporate rates of around 19-20%.
That’s a difference of about 25-30 percentage points, a significant financial incentive. That’s why experts view Kim’s company with skepticism.
By channeling payments through the company rather than receiving them directly, he gains lower taxable income. But tax authorities argue whether the arrangement qualified as legitimate business income.
The allegations suggest that he attempted to evade taxes by applying a lower corporate tax rate (19-20%) rather than paying the individual tax rate of 49.5%.
What are Fantagio and Kim Seon Ho’s Responses?
Fantagio’s Responses
On February 1, Fantagio firmly denied all allegations. The agency stated that:
- Kim is currently active under an exclusive personal contract with Fantagio.
- All legal and tax procedures are being followed in good faith.
- The one-person company was established solely for theater production and theater-related activities. It’s not for tax avoidance.
- The company has stopped its operations for over a year.
- Kim Seon-ho’s private company is currently undergoing official dissolution.
On February 5, Fantagio released a statement,
“The current case is at a stage where real details are being verified according to tax authority procedures. The agency and the artist are fully cooperating with investigations within their respective scopes of responsibility. Once the legal and administrative decisions are clear, we will implement the necessary measures responsibly. However, we earnestly request that unfounded speculation, unverified information, and excessive interpretation be exercised with restraint.”
Fantagio emphasized the corporation has “no relation whatsoever” to its contract or activities with Kim right now.
Kim Seon Ho’s Statement
As reported by The Korea Times on February 4, through his agency, Kim Seon Ho conveyed his deep regret for his lack of understanding of corporate management.
He said,
“I am deeply reflecting on having established and maintained the corporation for approximately one year without sufficient understanding of corporate operations. I sincerely bow my head in apology.”
According to the agency, he has taken preemptive measures to correct his insufficient understanding of corporate management, including returning past corporate assets and paying additional individual income taxes beyond the corporate tax already paid.
As stated by Fantagio,
“For the amounts previously settled through the corporation, personal income tax has been paid in addition to the corporate tax already paid.”
The agency added that Kim returned past corporate card usage expenses, family salaries, and the corporate vehicle as corrective measures.
But here’s where Fantagio’s defense may backfire.
What Experts Say and Warn About?
Lim Jeong Yeop
Attorney Lim Jeong-yeop of Jeong Hyang Law Firm said to OSEN that voluntary corrective action does not automatically resolve the current situation. Lim explained,
“If the money was spent on personal living expenses rather than business purposes, that constitutes embezzlement. Since this is a criminal matter rather than merely a tax issue, a police investigation is possible.”
Lim Jeong Yeop
He continued,
“If the tax evasion and embezzlement circumstances are real, preemptive measures would have no effect whatsoever,” and suggested that Kim’s series of corrective actions—returning credit card records, family salaries, the vehicle, and paying additional personal income tax—may unintentionally appear more like a confession than genuine corrective steps.”
Lim Jeong Yeop
Kim Myung Kyu
According to Kim Myung Kyu, a lawyer and accountant, Fantagio’s statement that the corporation had “no business activities for over a year,” while the actor was receiving payments through it, creates a dangerous implication.
As reported by Newsen, Kim explained,
“The claim of ‘no business activity’ is dangerous because if there was a real, no business operation, there should have been no business expenses either. If corporate cards were swiped and salary payments went to his parents during this dormant year, that money becomes ‘non-business related expenses’ (advance payments) under tax law. By making this claim, the agency has essentially opened the door for these funds to be interpreted legally as embezzlement or breach of trust of corporate assets for personal use.”
Kim Myung Kyu
He added,
“There’s the issue of ‘executive bonus treatment.’ Advance payments don’t simply end at ‘you borrowed money, so repay it.’ If money went out without genuine business activity, the National Tax Service will issue a ‘bonus treatment’ ruling, deeming it as the representative (Kim Seon-ho, etc.) receiving a bonus.”
Kim Myung Kyu
About the company dissolution, Kim explained,
“Shutting down the company doesn’t make the records and data the National Tax Service possesses disappear. In fact, the dissolution timing becomes an excellent opportunity for tax authorities to comprehensively review all financial flows. The explanation ‘We closed because there was no business’ could actually function as an invitation: ‘Please come investigate.'”
Kim Myung Kyu
Parallel Patterns: Kim Seon-Ho and Cha Eun Woo
Both actors work at Fantagio. Both created family-run corporations. And both routed income through family companies.
The specific red flag is that if family members receive salaries for work they don’t actually do, and those salaries get transferred back to the actors, it becomes a mechanism for income distribution without triggering gift taxes.
Tax authorities refer to this as “fabricated labor costs,” and the National Tax Service is keeping a close watch.
Citing from Sports Kyunghyang, according to Roh Jong Eon, managing attorney at Law Firm Jonjae,
“The confirmation of identical income-diversion patterns using family-owned corporations, first with Cha Eun-woo and now with Kim Seon-Ho, suggests circumstances that raise suspicion of not merely individual misconduct, but a ‘systematic design’ at the agency level.”
Roh Jong Eon
Moreover, Cha Eun-woo and Kim Seon-ho did not register for the required entertainment business planning license, which is required for receiving settlement payments from entertainment activities.
On Sports Kyunghyang, Lawyer Roh stated,
“Looking at both the Cha Eun-woo and Kim Seon-ho cases, people are discovering a real connection. Not registering as a Popular Culture and Arts Planning Business operator isn’t just breaking a simple administrative—it’s actually a way a tool exploited by high-income entertainers for tax avoidance.”
Roh Jong Eon
Agency Accountability
Separately from Cha’s 20 billion won assessment, Fantagio itself was hit with an additional 8.2 billion KRW(approximately $5.73 million) in tax for fraudulent tax invoices.
Critics question whether Fantagio, as a publicly listed company, could be unaware of such irregular settlement structures for two of its major artists.
Amid Cha Eun-woo’s tax scandal, a former NTS (National Tax Service) employee revealed something important. She said the tax investigators were not actually targeting Cha Eun-woo at first. They were actually investigating his management company, Fantagio.
She also explained that while the NTS was investigating Fantagiom, which she called the “main company,” they discovered something else. Here’s what she said:
“The investigators were originally watching at Cha Eun-woo’s agency, Fantagio. When they examined Fantagio’s financial records, they found a large sum of money going to what appeared to be an eel restaurant in Ganghwa. But when they investigated further, they found out that Cha Eun-woo was actually the owner of that restaurant.
They were trying to catch one big fish, but they ended up catching two. You can’t hide from a tax audit just by being careful. If you do a lot of suspicious things, the investigators will eventually find them.”
Moon Bo Ra
In response to her video, Fantagio stated on Star News,
“This decision is not final or official yet. We plan to explain our side of the story through the legal system. We also believe there are disagreements about how the law should be understood and used.”
Current Status
Kim Seon Ho’s Recent Actions:
On February 4, Fantagio explained about Kim Seon-ho’s settlement details:
What Kim Paid: Kim Seon-ho has paid additional personal income tax on amounts previously settled through the corporation, in addition to the company tax already paid.
Assets Return: He has returned all corporate card expenses, family salary payments, and the registered company vehicle.
Closure Process: The private corporation is undergoing official closure procedures; the administrative process is expected to be completed soon
What Remains Unclear?
- No formal tax notice: Unlike Cha Eun-woo, Kim Seon-ho reportedly has not received an official reassessment notice from the National Tax Service. This is important because it means authorities have not yet made an official judgment about whether this constitutes violations requiring investigation.
- Criminal investigation status: Currently, there’s no information whether Kim Seon-ho faces any criminal investigation.
- Agency accountability: Questions remain about whether Fantagio will be investigated.
What’s Next?
The tax allegations became Kim Seon-ho’s second major controversy since 2021. Reportedly, he recently lost endorsements. Brands like La Roche-Posay and Bean Pole removed ads after the actor came under scrutiny for his one-person corporate practices and tax evasion allegations.
However, not all of his projects have suffered the same fate. His upcoming stage play, “Secret Passage,” premieres on February 13, and all performance dates featuring Kim sold out early.
Despite the mixed results, his other projects continue moving forward. The actor’s upcoming projects include “Delusion,” “Unfriend,” and “The Congressman Is Watching.” There’s no official information regarding his new projects that have been affected by his controversy.
Final Thoughts
As Korean entertainment continues to globalize, questions about financial transparency and corporate accountability are likely to intensify.
Cha Eun-woo and Kim Seon-ho’s cases indicate these practices will continue to face scrutiny. When these practices face legal scrutiny, it raises questions about transparency and intent.
But the real problem isn’t about money. It’s about trust.
Fans care because they support their favorite artists. Workers care because they depend on steady work. Investors care because they invest in entertainment companies. These cases signal that oversight is essential to keeping the industry alive.
Because of this, the entertainment industry is under pressure to do two things at once: follow the law and be honest and responsible to the public.
What’s your opinion about Kim Seon-ho’s tax evasion case? Leave a comment below and share your thoughts!
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