Gen.G are back on top of Korea. Last week, the current MSI champions took revenge against Hanwha Life Esports (HLE) to lift the LCK trophy in front of thousands of fans at the Inspire Arena. But beyond the trophy, Gen.G’s victory carries significant financial weight as the company will be able to save millions of won in luxury tax with the new LCK spending system. Here’s why.

Gen.G’s LCK Championship Win Saves Them Hundred of Millions in Luxury Tax

Gen.G is benefiting from the luxury tax framework

The LCK introduced a luxury tax framework starting in 2023 to control spending by esports organizations. The main goal at the time was to avoid teams over-inflating player salaries and creating a more financially stable ecosystem. According to a report, the spending cap has been set at ₩4 billion (~$3M USD) per year. The cap is calculated on the total salary paid to the starting roster and it won’t include any substitutes or benched players.

While teams are allowed to go past the salary cap, they are also subject to paying a luxury tax. This usually occurs to teams looking to create superstar lineups, with multiple top-tier players across several roles. There is, however, a major caveat for the so-called “top performers”, which only counts 50% of the player salaries against the cap.

How LCK players become top performers

To be eligible for the reductions, players have to earn points based on their international and international success:

  • LCK Championships: 3 points (pre-2025 split system) or 2 points (post-merge).
  • International Titles: 1 point (First Stand), 2 points (MSI & Worlds).

With the latest LCK trophy, both Jeong “Chovy” Ji-hoon and Park “Ruler” Jae-hyeok have become “top performers”. The mid laner now has a total of six LCK points and four international points following the two MSI title wins. Ruler, on the other hand, has three LCK points and six international points, after winning Worlds in 2017 and two MSI titles (2023 and 2025).

This means that both players will now apply 50% salary reductions to Gen.G’s cap, which was exceeded for this season, according to sources. The other two players that benefit from the luxury tax reductions are Gen.G’s jungler Kim “Canyon” Geon-bu and the League of Legends GOAT, Worlds.

Going into 2026, Gen.G will now have three out of the five players counting half value against the cap. Considering the caliber and market value of the players, the estimated tax savings for Gen.G could reach hundreds of millions of won.

Both Chovy and Ruler have extended their contracts earlier this year to the end of 2027 as Gen.G is clearly looking to build its legacy around these two players. Top laner Kim “Kiin” Gi-in is the only player with a contract beyond 2025 (expiring in 2026), while Canyon and support Joo “Duro” Min-kyu currently only have contracts running until the end of the season.