Korean media outlets reported on November 28 that Yaongyi, the creator of the hit webtoon True Beauty, has won a legal challenge against South Korea's National Tax Service (NTS) over a multimillion-won value-added tax assessment, overturning a decision that had fueled a high-profile tax controversy last year.
According to a June ruling by the Tax Tribunal, the NTS must cancel tax charges imposed on Yaongyi (legal name Na-young Kim) for the period spanning the second half of 2018 through the first half of 2022. The decision means the webtoon artist will be refunded tax that had been assessed over several years.
The dispute centered on how True Beauty was classified for tax purposes. During a comprehensive audit in 2023, the NTS argued that Yaongyi's contract with Naver WEBTOON—under which she provided digital files of the series—constituted a taxable “copyright license service.” Yaongyi's side countered that the work qualified as an electronic publication, which is exempt from tax under Korean law.
The Tax Tribunal sided with the artist, applying Ministry of Culture guidelines that define VAT-exempt publications as works issued by a registered publisher. Yaongyi's company had registered as a publisher during the series' run.
Yaongyi said she would “continue to faithfully fulfill her tax obligations as a citizen.” During last year's controversy, she acknowledged accounting oversights but denied intentional tax evasion. Her husband, fellow webtoon creator Jeon Sun-wook, also emphasized at the time that there had been no willful wrongdoing.
Fans can read True Beauty on WEBTOON.
The first season of the animated series based on the True Beauty webtoon started streaming on Crunchyroll in September 2024. The animated series will have a second season and Crunchyroll will stream the new season.
A two-part Japanese live-action film adaptation premiered in Japan on March 20 and May 1.
Source: Sports Chosun (Min-jung Cho)