Ruler Tax Controversy Explained: Why this could be a big issue for the Gen.G ADC

Gen.G ADC player Park “Ruler” Jae-hyuk is currently in the eye of the storm after South Korea’s tax authorities confirmed a nominal trust violation, which has escalated into a major public controversy. Here’s what happened and what could this mean for the ADC.

Ruler Tax Controversy could have serious consequences for the player

According to a report by Korean media Inven, South Korea’s National Tax Law Information System had determined on March 26 that Ruler had evaded taxes through a nominal trust arrangement, a legal structure where a “nominee” (also known as trustee) holds legal title to property or assets while the “beneficiary” (the true owner) retains full control and beneficial ownership. In Ruler’s case, the nominee was his father.

According to Ruler’s management company, Supergent, which also issued a statement via Instagram, explained that the player’s father quit his job when Ruler was a trainee to provide full-time support, managing both the player’s schedule and finances. The latter also acted as an informant agent in team contract negotiations before signing with a licensed agency.

Considering the player’s strict schedule and practical constraints when competing, the father managed the assets under his own name for convenience. The post stated that there was never any intent to make a gift or transfer ownership, but the gift tax was nonetheless triggered by the nominal trust arrangement under Korean tax law. That being said, filing income under the father’s name, who had relatively less income, meant that income tax and gift tax were avoided. According to a report from Daily Esports, the case centered on two issues:

• Whether payments to Ruler’s father could legitimately be treated as deductible manager expenses
• Whether stock investments made through an account under his father’s name amounted to a title-trust arrangement with tax implications

In the end, the tax authorities concluded that evidence was insufficient to prove the father’s managerial role for deduction purposes, and that the title-trust structure could not be shown to lack a tax-avoidance purpose. Ruler’s side appealed, but the Tax Tribunal dismissed that appeal, confirming that the player would be liable for the resulting tax obligations. Supergent clarified that the full amount of gift tax has since been paid and the assets under Ruler’s father have also returned to the player.

Why the controversy blew up

Even though the initial tax controversy was initially contained, Ruler ended up under the spotlight due to one of his latest streams. On March 30, just a few days after the documents of the tax evasion went public, the Gen.G ADC went live on his personal stream to play solo queue without addressing the situation, further fueling the perception that the situation is being managed through silence rather than accountability.

Why has the reaction been so intense? In South Korea, tax controversies carry a stigma that is often disproportionate to the legal outcome, with several other personalities and public figures in the K-entertainment industry facing similar backlash.

There is also an adjacent political sensitivity around military-service exemptions for elite athletes and medalists. Ruler was part of the team that earned the exemption after winning the Hangzhou Asian Games alongside players like Lee “Faker” Sang-hyeok, but many people have questioned the exemption, especially compared to celebrities who had more global influence.

What could happen to Ruler

Ruler’s reputation already came under attack earlier this year when he was fined 800,000 KRW (~€460) for verbal abuse during LCK’s first disciplinary round. The player had been previously flagged in March 2025, meaning that it wasn’t a first offense.

The LCK has officially given an update on April 1, confirming that the matter is currently under review and investigation. The LCK Secretariat will establish an LCK investigation committee, with third-party external experts to carry out the investigation. “Depending on the investigation results and relevant regulations, additional actions may be reviewed and implemented if necessary,” said the statement.

For now, this means that Ruler is expected to start on Gen.G’s opening match of the LCK Season on April 3. After a rough showing at First Stand, where the team only ended in third place despite being the favorites, there will be a lot of attention for the Worlds 2017 champion.

This article has been updated to reflect the LCK’s statement on the matter. Translated using DeepL.