The Seoul Regional Tax Office launched an investigation into Cha Eun-woo in the spring of 2025. Photo: Cha Eun-woo/Instagram
South Korean singer-actor Cha Eun-woo is facing allegations of tax evasion and may be required to pay over 20 billion won (RM54.97mil) 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 and recently sent a notice stating he faces over 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 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 in order to help Cha qualify for a lower corporate tax rate of about 20% instead of the 45% income tax rate.
A tax industry insider quoted by Edaily said that the company’s registered address was located in Incheon city’s Ganghwa Island, a place not typically associated with entertainment-related work.
The NTS had also summoned Cha and his mother separately for investigation. 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. Cha enlisted in July 2025 and served as a member of the military band after completing the basic military training. 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 also 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.” – The Straits Times/Asia News Network
