League of Legends professional gamer Park Jae-hyuk, known as ‘Ruler,’ has been dismissed from his team following a tax evasion controversy linked to his father’s academy operations.
Details of the Tax Investigation
Tax authorities conducted a probe into the academy managed by Ruler’s father, which operated from 2018 to 2021. The business handled Ruler’s contracts, including team agreements and performance fees, but failed to properly report income, leading to allegations of evasion.
Officials issued a determination notice on March 26, confirming irregularities. Despite registering the academy under his father’s name, staff affiliated with Ruler oversaw daily operations, including salary and performance payments.
The academy name was changed to a ‘tax office’ entity, but records show non-compliance with reporting requirements. Ruler provided performance bonuses as ‘allowances’ to his father, which were not declared as taxable business income.
Ruler’s Response and Apology
On April 2, Ruler addressed the issue via social media, expressing deep regret. “I am truly sorry for causing worry to fans through recent tax-related reports,” he stated. “I have never intentionally hidden or evaded taxes.”
He explained, “Since 2018, my father secured jobs for me and managed everything, including my manager role. I was deeply involved in operations like team contracts, university admissions, and practice match fees.” Ruler noted that despite requesting recognition as performance income, authorities rejected it.
Ruler also denied ongoing irregularities, stating, “I take full responsibility for this incident. LCK-related issues reflect the league’s content and are handled sincerely. However, factory management needs further improvement.”
Industry Reaction
Industry observers describe the case as a ‘serious precedent’ in esports, unprecedented in scope. Personal finances in gaming often blur lines with business, but tax agencies emphasize clear separation.
The scandal highlights risks in treating allowances as non-reportable ‘pocket money,’ especially in large-scale operations lacking formal structures. It serves as a cautionary tale amid growing esports professionalism.
