Questions Mount Over Kim Seon Ho’s Use of Private Company to Receive Earnings

Actor Kim Seon Ho is facing growing scrutiny after reports emerged that he has been receiving entertainment-related payments through a privately owned company rather than under his personal name — a structure that critics argue could significantly reduce his tax burden.

According to Sports Kyunghyang, Kim established a company known as “SH2” in January 2024, and subsequent earnings from entertainment activities were reportedly funneled through this entity instead of being paid directly to him as an individual.

Why the Structure Matters

Under South Korean tax law, individual income can be taxed at rates of up to 49.5%, depending on earnings. However, corporate tax rates are capped at 19%, making a legal entity a far more tax-efficient vehicle for high-income individuals.

The fact that SH2 is registered at the same address as Kim Seon Ho’s personal residence has fueled speculation that the company may function more like a “paper” or “shell” entity rather than a fully independent business operation.

Legal Concerns Over Licensing

More controversially, SH2 is reportedly not registered under the “Popular Culture and Arts Planning Business” category, which is required by law for companies that manage or receive entertainment-related payments on behalf of artists.

Despite this, the company is said to have received management-related revenue.

Legal experts cited in the report warn that operating in this manner — receiving payments without the proper license — could be punishable by up to two years in prison under current regulations.

Lawyer Calls for Investigation

A lawyer commenting on the case described the arrangement as a clear attempt to exploit legal loopholes to minimize taxes.

He argued that this is not simply a gray area, but a form of tax evasion disguised as corporate structuring, and urged authorities to launch a broader investigation into similar practices within the entertainment industry.

His remarks suggest that Kim Seon Ho’s case may not be an isolated incident, but part of a wider pattern among top-tier celebrities.

Fantagio’s Changing Explanation

Kim Seon Ho’s current agency, Fantagio, initially stated that SH2 was created for legitimate business purposes — specifically, to produce theatrical productions — and denied that tax avoidance was a motive.

However, the company later modified its position.

Fantagio subsequently acknowledged that after SH2 was established, Kim did temporarily receive payments from his former management company through this private entity.

This admission has only intensified public and legal scrutiny, as it confirms that the company was indeed used as an intermediary for income distribution.

Parallels to Cha Eun Woo’s Case

Observers have also drawn comparisons to Cha Eun Woo, who previously faced similar questions over his own family-linked corporate structure.

While such arrangements are not uncommon in the Korean entertainment industry, they often attract criticism when they appear to prioritize tax efficiency over legal compliance or transparency.

What Happens Next?

At present, no formal charges have been filed against Kim Seon Ho. However, the combination of corporate registration issues, tax-rate discrepancies, and conflicting explanations from his agency has kept the issue firmly in the spotlight.

Whether authorities will pursue a full investigation remains to be seen — but the case has already reignited debate over how top celebrities manage their earnings and whether existing laws adequately prevent abuse.

For now, Kim Seon Ho’s use of SH2 stands as one of the most high-profile examples of the growing tension between celebrity business practices and public expectations of financial accountability.