Gen.G ADC Park ‘Ruler’ Jae-hyuk is in hot water after a 2024 court ruling of tax avoidance against the League of Legends pro was made public.
South Korea’s tax authorities ruled that Ruler must pay additional sums of tax following irregularities involving the LoL player’s father. Ruler expensed significant wages paid to his father for acting as his personal manager, but these expenses were deemed “unnecessary” and non-business related.
The LCK is currently investigating after Ruler was met with major backlash as Korean society has a heavy stigma against tax controversies.
Reports that Ruler could be permanently banned from the LCK appear to be false and due to a bad AI article recap, but the pro could face a maximum suspension or a fine of up to 100 million won ($66,295) according to the league’s rules.
It has been a bad couple of weeks for controversies surrounding LoL players, as the LPL’s Naiyauo was permanently banned for match-fixing.
Ruler’s Tax Dodging Allegations
Ruler was judged to have intentionally dodged taxes through two incidents involving his father.
Early in his career, Ruler paid his father a significant amount of “labour costs” between 2018 and 2021, employing his dad as a personal manager while deducting these payments as business expenses.
Tax authorities rejected this expense claim, finding inconclusive evidence that his father had performed managerial duties. The court ruling also stated:
“A professional player who has been under an exclusive contract with his team since 2016 and has remained active within that structure has no reason to engage an external manager or incur additional costs, as the team exclusively manages all of his activities and bears the associated expenses.”
Ruler’s representatives appealed this, arguing that the player needed managerial services, such as negotiating salary and handling interview terms, which had been handled by his father before the ADC signed with an agency in 2022. This argument was rejected.
Additionally, it was found that Ruler had invested in stocks under his father’s name in a title trust arrangement. While it was argued that this was to allow Ruler’s father to manage the investment on his behalf, this effectively allowed the family to avoid higher dividend tax brackets.
Ruler’s representatives argued this had been a name declaration error and had only resulted in a minor tax reduction, but this was also denied.
Ruler now could face a potential suspension, which would be troubling for Gen.G as the LoL esports Spring Split is starting now.
Would a suspension be justified or is a fine from the LCK enough? Let us know your thoughts on the Insider Gaming Discord.
