Actor Lee Yi Kyung has become the latest celebrity caught up in South Korea’s ongoing discussions surrounding one-man agencies and celebrity tax management.

According to recent reports, the National Tax Service conducted an irregular tax audit targeting Lee Yi Kyung’s personal corporation. Authorities reportedly concluded that part of the actor’s personal income had been processed as corporate revenue through the company structure, potentially allowing the corporation to benefit from lower corporate tax rates compared to individual income tax rates.

As the issue quickly drew public attention, Lee Yi Kyung’s agency SANGYOUNG ENT released an official statement on May 13 addressing the controversy and apologizing for causing concern.

In the statement, the agency emphasized that Lee Yi Kyung has consistently fulfilled his tax obligations since debut and fully cooperated throughout the investigation process by transparently submitting all requested materials.

The agency also strongly denied any intentional wrongdoing.

According to SANGYOUNG ENT, the issue stemmed from differing interpretations between tax authorities and the company regarding expense processing standards during the operation of the corporation, rather than deliberate tax evasion or hidden income.

The statement specifically stressed that there had been “absolutely no intentional omission of income or dishonest tax avoidance.”

At the same time, the agency stated that it respects the National Tax Service’s decision and plans to pay the imposed penalty tax in accordance with official procedures without delay.

The company further added that it intends to strengthen its internal tax and accounting management systems to prevent similar controversies in the future.

This situation arrives during a particularly sensitive period for the Korean entertainment industry, where multiple celebrities have recently faced additional tax penalties connected to the handling of one-man corporations.

One-man agencies have long been a common structure used by actors and entertainers in South Korea to manage income, expenses, scheduling, and business activities under a corporate framework. However, recent controversies have triggered broader industry discussions regarding how celebrity corporations should be regulated and audited.

Earlier this year, the Korea Management Federation reportedly even called for institutional improvements and clearer standards regarding taxation issues tied to celebrity-owned corporations.

As a result, public attention surrounding Lee Yi Kyung’s case has extended beyond the actor himself, becoming part of a larger conversation about taxation practices, legal interpretation, and financial transparency within the entertainment industry.