Jang Geun Suk's Mother Receives Suspended Sentence And Fine For Offshore Tax Evasion

Jang Geun Suk’s mother (hereafter referred to as “Jeon”) has received a suspended prison sentence and a fine for evading taxes while running an entertainment agency.

On January 19, the Seoul Central District Court sentenced Jeon to two years and six months in prison suspended for four years as well as a fine of 3 billion won (approximately $2.7 million) for tax evasion. In accordance with the principle of dual liability, the entertainment agency Tree J Company (now Bom Bom) operated by Jeon has also been fined 1.5 billion won (approximately $1.4 million) for violating the Punishment of Tax Evaders act.

The court explained, “The defendant did not report their taxes even after a tax audit and continued to evade taxes of over 1.8 billion won (approximately $1.6 million). Considering the method and outcome of the crime, there is much room for criticism.” They added, “The defendant has now paid the entire sum of taxes that were evaded, and they have no history of being punished for a crime of the same kind. We will consider these as factors favorable [to the defendant].”

At the time of the tax evasion, Jang Geun Suk was the only artist in Tree J Company. Jeon was indicted on the charge of withdrawing or spending the profits, earned by Jang Geun Suk, overseas in countries like Hong Kong and leaving out billions of won (millions of dollars) in the income declaration.

During the trial, Jeon claimed that she had not purposely omitted the sum in the income declaration and did not intentionally evade taxes. Nonetheless, she was ruled guilty of tax evasion. Regarding the suspicion that had embezzled funds by keeping the company’s funds in her personal account, she was ruled innocent; she had not pulled the money out, and it was later returned to the company.

Jang Geun Suk left Tree J Company and went independent after beginning his military service in July 2018. Last year, Jang Geun Suk’s agency director issued a statement regarding their position on the matters regarding his mother and clarified that the actor had nothing to do with the situation.

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