K-pop star Cha Eun-woo suspected of evading $17.4m in taxes
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The Seoul Regional Tax Office launched an investigation into Cha Eun-woo in the spring of 2025.
PHOTO: EUNWO.O_C/INSTAGRAM
South Korean singer-actor Cha Eun-woo is facing allegations of tax evasion and may be required to pay more than 20 billion won (S$17.4 million) in back taxes and other levies.
According to an exclusive report by South Korean media outlet Edaily on Jan 22, the Seoul Regional Tax Office launched an investigation into the 28-year-old in the spring of 2025. It recently sent a notice stating Cha faces more than 20 billion won in back taxes due to suspected tax evasion and other offences.
Cha’s mother, identified only as Ms Choi, had established a company and signed a contract with his current agency, Fantagio, to support his entertainment career. The profits from his entertainment income were reportedly divided among him, Fantagio and the company according to an agreed-upon ratio.
Cha rose to fame as a member of K-pop boy band Astro and has starred in K-dramas such as My ID Is Gangnam Beauty (2018), True Beauty (2020 to 2021) and Wonderful World (2024).
Following its investigation, South Korea’s National Tax Service (NTS) concluded that the alleged shell company, which does not have any real business operations, was set up to help Cha qualify for a lower corporate tax rate of about 20 per cent, instead of the 45 per cent income tax rate.
A tax industry insider quoted by Edaily said the company’s registered address was located in Incheon’s Ganghwa Island, a place not typically associated with entertainment-related work.
The NTS had also summoned Cha and his mother separately for investigations. It determined that the profits obtained by the company flowed back to Cha, and estimated that the amount of evaded income tax exceeded 20 billion won.
At Cha’s request, the NTS reportedly waited until his military enlistment was completed before sending the tax audit notice containing these details. He enlisted in July 2025
He is scheduled to be discharged in January 2027.
His representatives have requested a tax assessment review of NTS’ decision after receiving the notice and are waiting for the outcome.
Fantagio released a press statement on Jan 22 in response to Edaily’s report.
“The issue centres on whether the company established by Cha Eun-woo’s mother is subject to taxation,” it said. “Currently, no final decision has been made, and we plan to actively clarify any issues related to the interpretation and application of the law through due process.”
It added: “The artiste and his tax agent will cooperate fully with the investigations to ensure the swift conclusion of this process. Cha Eun-woo promises to continue faithfully fulfilling his tax reporting and legal obligations as a citizen.”
According to The Korea Herald, South Korea’s advertising industry has begun distancing itself from Cha.
Shinhan Bank has set to private the advertisements featuring the star on its YouTube channel and other social media platforms. Skincare brand Abib also made the commercial videos featuring Cha private on its YouTube channel and deleted related posts from Instagram and X.
He is slated to appear in Netflix’s upcoming superhero comedy series The Wonderfools, which also stars South Korean actress Park Eun-bin.
