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Ruler tax evasion explained: Why the Gen.G star could face an LCK penalty

Gen.G Ruler commits tax evasion

South Korea’s tax authorities found that Ruler was guilty of tax evasion. Gen.G’s ADC is now under review by the LCK, as the league’s rules expose him to a potential fine or even ban. Another large issue he now faces is the public backlash as well as consequences his team might decide on.

Gen.G Ruler’s tax evasion

Between 2018 and 2021, Ruler named his father as his manager. As such, he handled his son’s assets and was paid for it. However, in South Korea, such fund transfers between family members should be subject to gift taxes.

In 2023, the authorities deemed this to be tax evasion. Ruler appealed the decision but kept acting the same way in the meantime. Eventually, he lost the appeal and paid the taxes.

Ruler risks an LCK ban for his tax evasion

While Ruler is out of legal trouble now that he has settled his debt, he might still face consequences.

First, from the LCK. The league’s rulebook includes an article (9.2.8) stating penalties for players who engage in illegal activities. Said penalties range from a fine of over €50,000 to a ban. The LCK may impose these if the investigations damage the reputation of the league.

Public backlash is already massive in South Korea regarding this issue, as the news was even shared on TV. This could force the LCK’s hand or even Gen.G’s, since this will affect the public image of both the league and the team.

Furthermore, the LCK’s long-lasting main sponsor is a bank, which might also voice their opinion on that.

Lastly, Ruler is exempt from military service thanks to winning a gold medal in the Asian Games in 2022. Following this news, the Ministry of Sports could revoke the status.

As of today, the LCK has just edited Ruler’s name out of their latest video, the same way LoL Esports did with Bwipo’s controversies.

With Gen.G being the best LoL team in South Korea and in the world, disciplinary action against Ruler could have major consequences over the entirety of the esports scene.

Featured image source: Bruno Alvares / Riot Games

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