Honey Lee's Business Controversy Deepens as Police Send Case to Prosecutors

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South Korean actress Honey Lee, famous globally for her appearances in "The Fiery Priest," and her husband have been indicted on charges linked to the running of their entertainment business management organization, according to Korean news publications this week.

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According to police authorities, the Gangnam Police Station in Seoul indicted Lee, who is married to Mr. Jang, and her company called Hope Project, on Dec. 23 without detention, and this is regarding a suspected breach of the Act on the Development of the Popular Culture and Arts Industry. This act regulates entertainment planning businesses.

Lee established Honey Co., Ltd. in 2015 but later changed its name to Hope Project in 2018. The CEO of the firm is Lee's husband, and she is registered as a director in the firm. However, investigations by the authorities established that the firm had been operating without registering as a planning business, an offense that led to a police investigation.

According to the regulations, any firm that hires more than one individual is supposed to register as a planning business, and failure to do so attracts a penalty of up to two years in prison or a 20 million won ($13,500) fine.

Because of the probe, the matter has been clarified by Lee's representatives in the past. Through an explanation of the circumstances, her side said that "they did not fully understand the registration requirements and therefore did not proceed with the procedure." Koreaboo wrote that the agency released an announcement to clarify the current status of the company.

The body further clarified the issue in another statement issued on Dec. 24. On the issue of compliance, the personnel stated that Hope Project had done the registration required under Article 26, Paragraph 1 of the Act on the Development of the Popular Culture and Arts Industry, obtaining the registration certificate as of Oct. 28, and that the company "will cooperate with all the procedures involved to resolve this matter legally."

The case continues with previous deliberations on past tax issues involving the firm. Earlier in the year, Hope Project was under controversy over approximately 6 billion won (approximately $4.1 million) in additional taxes due to an audit by the Seoul Regional Tax Office. It was reported that the audit focused on 2.7 billion won in salary distribution paid between 2021 and 2023 with individuals with no regular employment status, as well as the purchase of a 6.45 billion won building in the firm's name.

This was according to Daum, who quoted justifications by Lee's team that the firm paid its taxes and that the tax notice was due to conflicting legal opinions. Lee also commented on the taxation issue in a press conference for her drama ''Aema.''

This issue is currently within the consideration of a higher authority, so there are no things that I can state now on the matter. As of lately, Song Hye-kyo gave birth to her second child in August and will make a comeback in the new TV show ''Show Business'' on Netflix with Gong Yoo.

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