Cha Eun Woo is reportedly under investigation for alleged tax evasion involving more than 20 billion won ($13.6 million), according to local media.
Edaily reported on January 22nd that Cha underwent a high-level audit by South Korea’s National Tax Service last year over alleged unpaid income taxes. Authorities reportedly informed him of additional taxes exceeding 20 billion won—one of the largest amounts ever linked to a tax case involving a Korean entertainer.
Cha has reportedly requested a pre-assessment review, a procedure that allows him to explain his position before the tax decision is finalized.
The issue involves a one-person agency set up by Cha’s mother. According to reports, Cha carried out his entertainment activities through an arrangement involving his current agency, Fantagio, the privately established company (hereinafter referred to as Company A) and himself, with income shared among the three.
The National Tax Service suspects that Company A may have been a “paper company” that did not actually provide meaningful services for Cha’s work. Authorities suspect it was used to lower his personal tax burden, reportedly as high as 45 percent, by moving income to a company taxed at a lower rate.
As part of the investigation, both Cha and his mother were summoned for questioning. The tax authority ultimately concluded that more than 20 billion won in income taxes had not been properly paid.
Fantagio said the issue has not yet been finalized. In a statement, the agency explained that the main question is whether the company set up by Cha Eun Woo’s mother should be treated as a proper taxable business, adding that no final decision has been made and that they will explain their position through legal procedures.
The agency also said Cha and his tax representatives will fully cooperate with the process and emphasized that he remains committed to meeting his tax and legal obligations as a citizen.
Cha Eun Woo enlisted in the South Korean military in July of last year and is currently serving in the Army Military Band.
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