Four days after explosive tax evasion allegations surfaced, K-pop star and actor Cha Eun Woo has broken his silence with a public apology. However, his statement has done little to stem the bleeding, as more advertising partners are moving to distance themselves from the embattled star.
Cha took to his social media account on January 26th to address the controversy for the first time.
“I sincerely apologize for causing concern and disappointment to many people due to various recent matters related to me,” he wrote. “I will faithfully participate in the tax-related procedures that will proceed in the future. Moreover, I will humbly accept the final judgment made by the relevant authorities and take full responsibility accordingly.”
Despite the apology, the advertising industry’s exodus continues. On the same day, fashion brand Marithé et François Girbaud set all videos and posts featuring Cha Eun Woo to private on YouTube and social media.
The move was particularly dramatic as the brand had initially told media outlets earlier that day that there were “no deletions or special changes” planned regarding their campaign. Less than five hours later, they scrubbed the star from their public channels. This follows similar moves by skincare brand Abib and Shinhan Bank, both of which had already pulled their advertisements.
Cha Eun Woo has been notified by South Korea’s National Tax Service over more than 20 billion won ($15 million) in unpaid income taxes.
Investigators allege that Cha used a “ghost company” scheme to lower his tax bill. The NTS determined that a one-person agency established by his mother signed a service contract with his main agency, Fantagio, but provided no actual services. Authorities believe earnings were funneled through this shell company to take advantage of lower corporate tax rates rather than paying the steep 45% individual income tax rate applicable to high earners.
Cha’s agency, Fantagio, maintains that the issue is a matter of legal interpretation. “The main issue is whether the corporation established by Cha Eun Woo’s mother is subject to actual taxation,” the agency stated. “This matter has not been finally confirmed, and we plan to actively clarify the issues related to legal interpretation through proper procedures.”
>> Cha Eun Woo Hires Top Law Firm to Fight $13.6 Million Tax Evasion Claim
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