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[Herald Economy reporter Kim Seong-hoon] Park Jae-hyeok (28), better known in esports as “Ruler,” earned a military exemption after winning a gold medal at the Asian Games and now faces allegations of tax evasion.
On March 30, records from the National Tax Law Information System showed that the Tax Tribunal rejected Park’s appeal challenging a comprehensive income tax assessment issued by the National Tax Service (NTS).
Park was subject to an NTS audit over alleged tax avoidance. After the agency assessed comprehensive income tax, he filed an appeal asserting the assessment was unfair. The tribunal dismissed his claim.
In his petition, Park asked the tribunal to recognize payments made to his father from 2018 over three years as deductible manager wages. He said his father performed actual management duties and was compensated for that work.
The tribunal rejected that argument, noting that under exclusive contracts, professional teams manage players’ activities and cover related expenses. It found Park failed to provide evidence demonstrating the need for a private manager or substantiating the claimed payments.
The case parallels a recent NTS inquiry into actor Cha Eun-woo, who was investigated over allegations that management duties were routed through a company registered to his mother to reduce tax liability.
The NTS also imposed gift tax on Park, concluding he did not demonstrate that transferring stock into his father’s name lacked a tax-avoidance purpose.
Park’s agency, Superzent, issued a statement saying, “These funds are the player’s personal assets, and he paid 100% of the income tax when the income was realized. The subsequent tax assessment arose from administrative errors in asset management. There was no intent to make an actual gift, and we have paid the gift tax in full, which we view as penalty-like.”
Park has faced intensified criticism because he received a military exemption. He secured that exemption by winning the gold medal in League of Legends at the 2023 Hangzhou Asian Games.
The LCK’s regulations permit the league to impose sanctions, including suspending players from competition, “in cases where tax authorities or similar investigations are underway.”
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