Kim Tae Hee Reportedly Exploited A Loophole In The Law To Evade Over S$1mil In Real Estate Taxes

Kim Tae Hee is one of most-loved actresses in Korea and her reputation as an star who has it all — beauty, brains, an established career and a loving, handsome husband and children — is firmly cemented in the minds of Korean audiences. Most recently, she was praised by netizens when it was revealed that she had slashed the rent for the tenants in her building by half because of the COVID-19 business slump.

But whatever goodwill she has built for herself over the years crumbled in an instant after Korean broadcaster MBC aired an episode of PD Note, an investigative journalism programme. The show revealed that the 40-year-old actress is part of a group of stars, which includes Lee Byung Hun, Kwon Sang Woo and Han Hyo Joo, who have evaded millions of dollars in real estate taxes by exploiting a loophole in the law.

In case you don't know, Korean stars frequently purchase expensive buildings as they are viewed as one of the best types of real estate investments in South Korea.

Hefty real estate taxes, which include a value added tax (VAT) of 10 per cent of the purchase price are levied on individuals who acquire properties. However, corporations are usually exempt from paying this portion of the tax. In addition, companies located outside of Seoul are able to receive additional reductions in the amount of tax paid.

PD Note revealed that Lee Byung Hun used what was effectively a paper company, which has a registered address in Gyeongi province, located just outside Seoul, to purchase a 26bil won (S$30.1mil) building in Yeongeungpo, Seoul. The show also said that Kim Tae Hee purchased a 13.2bil won (S$15.3mil) building in Gangnam using similar methods. PD Note then went on to add that the actress managed to save 920mil won (S$1.06mil) in taxes because of this.

The National Tax Service has since started investigating 27 of such paper companies, and while this method of evading taxes is not illegal, an official has said that they would possibly be making amendments to the law in the near future.

Netizens have since expressed outrage at the news, with many slamming the stars for setting a bad example. “Why is Kim Tae Hee using her smarts to do things like this? said one netizen. The actress graduated from the prestigious Seoul National University, which is notoriously hard to get into, and those who manage to do so are regarded as extremely intelligent.

Another added, “These celebs never stop to consider that they have a duty as a public figure. I’m not surprised to see Lee Byung Hun, Kwon Sang Woo and Han Hyo Joo involved in this because they’ve been involved in other scandals, but I’m shocked to read about Kim Tae Hee, who is regarded as a smart and kind person.”

Photos: PBE Media, Channel A