Why South Korea’s Hallyu heroes find taxes so … taxing

For a moment, Kim Seon-ho’s return looked complete: a Netflix hit, overseas buzz and a career seemingly past the scandal that forced him into an indefinite hiatus in 2021.Then a new controversy hit – this time, over taxes.Kim’s agency, Fantagio, was quick to deny that a theatrical production company he reportedly registered at his home address in January 2024 under his parents’ names had been used to reduce his tax liabilities.The 39-year-old star of Can This Love Be Translated? has not been charged with any criminal offence, but the revelations – originally reported by media outlet Sports Kyunghyang – had an immediate impact, with one prominent fashion brand distancing itself from Kim in the aftermath.In South Korea’s entertainment industry, few allegations taint a celebrity brand faster than those involving taxes. Even before investigations conclude or disputes are formally resolved, the label of “tax evader” can take hold online, putting pressure on advertisers.As K-pop and K-dramas have produced global stars commanding vast appearance fees, tax disputes have become a recurring flashpoint. They expose a grey zone between aggressive tax planning and unlawful evasion, while raising a broader question: has the tax system kept pace with the industry’s explosive growth?