Today, The Korea Management Federation(KMF, Han Mae-yeon), a major non-profit organization that represents entertainment management agencies and professional managers in South Korea and Korea Media Rating Board (KMRB), a public organization under the South Korean Ministry of Culture, Sports and Tourism released a joint statement providing critical context for the "tax evasion" allegations currently surrounding Cha Eun-woo and other high-profile stars.
Key Takeaways from the Industry Statement:
A "Gap in Perception": The KMA argues that while stars now act as global brands, the National Tax Service (NTS) is using outdated standards. The NTS often labels "personalized corporations" as "paper companies" solely because they reduce personal income tax, ignoring their legitimate business functions.
Legitimate Business Operations: The KMA clarified that these corporations are not "shells." They manage intellectual property (IP), handle mental health care, assume legal risks for contracts, and employ full-time staff. Many courts have already recognized these as real, functional corporations.
The "Absence of Standards": The statement highlights that many tax penalties are being overturned in court. This proves the issue isn't "malice" or intentional evasion, but a total lack of clear, predictable taxation guidelines from the government.
Protecting K-Culture: The association warned that judging these structures solely through the lens of tax evasion threatens the growth of K-Culture. They are calling for an institutional shift to recognize artists as corporate entities.
They added "K-culture is no longer the achievement of a few individual stars, but the future industry of the Republic of Korea and a national brand. The moment we judge the structure that has driven its growth, solely through the lens of tax evasion, we will be turning off our own growth engine. We earnestly appeal to the public and the government to acknowledge the reality of the industry and improve the system under the premise of transparent operation."
source: https://m.entertain.naver.com/home/article/609/0001092114
Our Next Steps: This statement confirms that this is an administrative dispute over outdated rules, not a criminal act. Cha Eun-woo is being unfairly targeted by a "trial by media" due to systemic failures.
We respectfully urge the Government and NTS to take action for a fair process for Cha Eun Woo
We are calling for MND to honour his 'presumption of innocence' and release the Storytelling videos that are being withheld and to continue to use him in public facing events/media
We demand that the media and public immediately stop the unwarranted massacre of his image
Thank you for the incredible support for this Global Call to Action. Reaching 14,000 signatures is a powerful statement. Please continue to advocate for CHA EUN WOO's and all celebrities/public figures rights to privacy and a fair process by continuing to share this petition on social media and within your communities. Let’s keep the momentum going until we ensure a resolution based on legal facts and fair standards is achieved.
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