Park ‘Ruler’ Jae-hyuk has found himself in the midst of a tax avoidance scandal.
According to a disclosed petition for adjudication via the National Tax Law Information System, the National Tax Service has determined that the labor expenses Park provided to his father, as well as a stock title trust arrangement between them, constituted tax avoidance. Park’s party contested the ruling by submitting a petition to the Tax Tribunal, but the appeal was eventually rejected.
The tax authority clarified that it could not validate the payment made to Park’s father as a legitimate business cost due to the absence of documented proof demonstrating his actual performance of managerial duties. Furthermore, it was noted that there was inadequate evidence to support that the stock title trust had no tax avoidance intent, and as a result, the resulting tax reduction could not be dismissed as insignificant.
Amid escalating tensions, SUPERGENT, the agency representing Park, released a statement on its official social media platforms attributing the issue to administrative oversights in asset management. The agency affirmed that there was no genuine intention to present a gift, although it acknowledged that gift tax of a punitive nature had been triggered by the title trust arrangement and had already been settled in full.
Meanwhile, the LCK disclosed that it is internally investigating the situation to verify the facts.