After being accused of tax evasion of KRW 900 million (approximately USD 617,000) during a recent tax investigation, actor Lee Joon Gi has stepped up to deny the claims personally.

As per Chosun Ilbo, Lee confirmed on March 19, through his agency, Namoo Actors, in an official statement that he had just been audited and that there were no tax evasion charges against him.

However, he had been subject to a routine tax audit carried out in 2023 by the Gangnam Tax Office.

Following media reports, the agency clarified that the reassessment amount was paid because Lee and his tax advisors interpreted the specific provision of the tax law differently than the authorities.

Earlier this year, police launched an investigation into JG Entertainment, a one-person agency that Lee founded with his father in 2014.

Lee does have an exclusive contract with Namoo Actors. Still, his project fees were funneled through JG Entertainment, meaning that he only paid a 24% corporate tax rate rather than the 45% personal income tax bracket (which applies to annual income over $1 million).

This arrangement was understood by the authorities to have been purposely availed of to lower Lee's tax liabilities.

In addition, their attention has sharpened ever since JG Entertainment disclosed they bought a penthouse in Cheongna, Inche, in 2021 for KRW 2.95 billion (around USD 2.02 million).

There was prolific speculation that the property was Lee's residence. His reps dismissed the claims as baseless, and the tax authorities investigated the matter and determined that no laws were broken.

Namoo Actors also said that the tax authorities had not found fault with Lee's income management in past investigations.

The agency noted there is "no guidance from the tax authorities or courts" on the setup of operating income and assets within a private corporation.

Lee Joon Gi has requested that the Tax Tribunal review the decision even though it has already paid the full reassessment amount. The investigation is still in progress.

Lee is not the only one who's going through such a challenging circumstance, as actor Yoo Yeon Seok recently received a heavy tax ratio, too.