Honey Lee Addresses Tax Evasion Claims: 'It's a Matter of Misinterpretation'

Actress Honey Lee has issued a statement to address recent allegations of tax evasion following a comprehensive audit of her private corporation.

On March 7, Lee's agency, TEAMHOPE, reportedly released an official statement explaining the results of the tax audit.

The statement noted, "We would like to clarify that the audit discovered no instances of tax evasion or tax dodging, such as deliberate omissions or false expenses, involved in Honey Lee's entertainment activities."

It further described Lee as someone with an extensive career that expands beyond traditional Korean music performances to content development, production, and investments.

To manage these various ventures, Lee established the corporation Hope Project to separate income from her acting career from revenue generated through other activities.

According to TEAMHOPE, this income was reported as corporate revenue, and corporate taxes were duly paid.

However, during a recent "Comprehensive Special Tax Audit for Corporate Artists," tax authorities determined that this income should have been classified as personal income. This resulted in Lee facing extra income taxes that she has since paid.

TEAMHOPE said the actress was merely penalized for wrong tax submissions, not for fraud, and said it was not a serious penalization.

"This tax assessment arose from a difference in legal interpretations regarding whether an artist with a private corporate entity should pay corporate tax or income tax on their earnings," the agency stated.

Lee has complied with all tax authority decisions and has paid an amount significantly exceeding the highest statutory tax rate. "As a responsible citizen of South Korea, Lee Ha-nee has always adhered to tax laws and procedures and will continue to fulfill her tax obligations diligently," the statement concluded.

In September of last year, reports surfaced that Lee underwent an extensive tax audit by the Seoul Regional Tax Office and was charged 6 billion KRW (approximately $4.5 million USD) in additional taxes, marking the highest known tax imposition on a South Korean celebrity.