Agency denies Han Hyo-joo's tax evasion allegations after reports claim she was fined 70M KRW in audit

Han Hyo-joo
Han Hyo-joo's agency releases a statement refuting tax evasion claims (Image via Instagram/hanhyojoo222)

On June 13, Han Hyo-joo's agency, BH Entertainment, denied that the 36-year-old was fined millions of Korean Won after allegedly trying to evade tax. The agency said that there was "a difference in the interpretation" and "accounting errors," which resulted in her receiving "a regular tax audit." It added that she did not receive a special tax audit.

On the same day, Aju Economy reported that the Happiness actress was fined between 60 to 70 million KRW, i.e. approximately 47,234 USD to 55,106 USD. The publication claimed that the Seoul Regional Tax Service found irregularities in her annual tax papers and concluded that she had underreported her taxes.

After the news made headlines, since the Happiness actress served as the ambassador for National Tax Service in 2011, her agency quickly released a statement denying the reports.


Han Hyo-joo's agency releases statement explaining tax evasion claims, refutes allegation

Han Hyo-joo recently found herself in hot water after a publication claimed that the actress had tried to evade tax. The news came to light after several popular K-drama actors were reported to have done the same when the National Tax Service launched an investigation against celebrities back in 2020.

Their motive was to thoroughly investigate famous people who had bought real estate under the names of their personal corporations rather than their own name, according to Koreaboo.

The latest actor to get swept up in tax evasion claims was 36-year-old Han Hyo-joo. According to Aju Economy, the actress reportedly purchased a building in Eunpyeong, Seoul, in 2018. The same raised eyebrows as the purchase was made under her father's representative corporation.

However, the report stated that no such corporation operated in the building. It also mentioned that the Happiness actress purchased it in 2017 and sold it in 2021, achieving a profit of nearly 2.50 billion KRW.

BH Entertainment, the actress' agency, quickly refuted the claims saying that it was a difference in accounting.

Translated to English via Soompi, the statement read:

“Han Hyo-joo received a regular tax audit and not a special tax audit. There were no substantial issues, omission, or any aspects that would raise suspicions of tax evasion. However, in the process of investigation, a difference in the interpretation of what is subject to taxation resulted in accounting errors. A portion of the recognized costs resulted in [the actress] paying additional charges."

The agency also mentioned the actress' achievement of being awarded by the government for being an "exemplary taxpayer" in 2014 as it continued:

"The agency and Han Hyo-joo have dutifully paid taxes until now. In particular, Han Hyo-joo served as an ambassador for the National Tax Service in 2011, and she also paid her taxes dutifully to the extent of receiving a commendation from the president for being an exemplary taxpayer in 2014. There has not once been an unpleasant incident regarding taxes. Han Hyo-joo and our agency’s actors will continue to pay taxes dutifully as principle going forward.”

Meanwhile, in September last year, another BH Entertainment artist, Lee Byung-hun, known for his work in Mr. Sunshine, I Saw The Devil, and Squid Game was reportedly also fined 100 million KRW in additional taxes.

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Edited by Adelle Fernandes
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