K-pop sensation and actor Cha Eun-woo has found himself at the center of intense media attention, though this time the spotlight is far from celebratory. According to multiple reports, the ASTRO member is under scrutiny by South Korea’s National Tax Service over allegations of large-scale irregularities in tax payments. Authorities are reportedly examining a case involving an estimated sum exceeding 20 billion Korean won, which translates to roughly 13.7 million US dollars or about Rs 108 crore.
At the heart of the probe is a company suspected to exist only on paper. Investigators believe this entity, allegedly registered under the name of Cha Eun-woo’s mother, may have been established to significantly lower his income tax obligations. While the matter has raised serious questions, it is important to note that the singer-actor has not yet been officially indicted. He is currently fulfilling his compulsory military service, and the investigation remains ongoing.
Despite the absence of formal charges, the controversy has already begun to ripple through his professional life. Reports suggest that a well-known skincare brand has withdrawn his promotional content, while several other advertisers are said to be reviewing whether to continue their partnerships with him. This development comes at a time when Cha Eun-woo is also preparing for the release of his next project, the Netflix series The Wonderfools, making the situation particularly delicate for his career.
His agency, Fantagio, has firmly rejected the accusations and issued a statement asserting that the actor has applied for a pre-assessment review. This process allows him to formally contest the conclusions drawn by the National Tax Service before any further legal steps are taken. The result of this review is expected to be a decisive factor in shaping how the case progresses.
Legal experts quoted in discussions referenced by Koreaboo highlight that the classification of the issue will be critical. If authorities determine the matter qualifies as tax evasion, they would need to prove that the single-person company linked to his mother was deliberately created to divert his professional income.
However, if the case is deemed a matter of tax avoidance stemming from differing interpretations of tax regulations, it would remain a civil dispute rather than a criminal one. Under such circumstances, Cha Eun-woo would be required to clear the outstanding amount, estimated at around 20 billion won, without facing a courtroom trial. Similar situations in the past involving actors Song Hye-kyo and Honey Lee ended with financial settlements rather than criminal proceedings.
At the heart of the probe is a company suspected to exist only on paper. Investigators believe this entity, allegedly registered under the name of Cha Eun-woo’s mother, may have been established to significantly lower his income tax obligations. While the matter has raised serious questions, it is important to note that the singer-actor has not yet been officially indicted. He is currently fulfilling his compulsory military service, and the investigation remains ongoing.
Despite the absence of formal charges, the controversy has already begun to ripple through his professional life. Reports suggest that a well-known skincare brand has withdrawn his promotional content, while several other advertisers are said to be reviewing whether to continue their partnerships with him. This development comes at a time when Cha Eun-woo is also preparing for the release of his next project, the Netflix series The Wonderfools, making the situation particularly delicate for his career.
His agency, Fantagio, has firmly rejected the accusations and issued a statement asserting that the actor has applied for a pre-assessment review. This process allows him to formally contest the conclusions drawn by the National Tax Service before any further legal steps are taken. The result of this review is expected to be a decisive factor in shaping how the case progresses.
Legal experts quoted in discussions referenced by Koreaboo highlight that the classification of the issue will be critical. If authorities determine the matter qualifies as tax evasion, they would need to prove that the single-person company linked to his mother was deliberately created to divert his professional income.
However, if the case is deemed a matter of tax avoidance stemming from differing interpretations of tax regulations, it would remain a civil dispute rather than a criminal one. Under such circumstances, Cha Eun-woo would be required to clear the outstanding amount, estimated at around 20 billion won, without facing a courtroom trial. Similar situations in the past involving actors Song Hye-kyo and Honey Lee ended with financial settlements rather than criminal proceedings.
