The fallout from recent tax evasion allegations is sweeping through the Korean entertainment industry, with top stars Cha Eun Woo and Kim Seon Ho facing immediate repercussions from their corporate sponsors.
Industry sources confirmed on February 6th that the advertising contract between LG Uplus and its brand ambassador, Cha Eun Woo, has officially ended. Cha had been the face of the telecom giant’s campaign since 2024.
The termination comes just as news broke that the National Tax Service notified Cha of a back tax assessment totaling approximately 20 billion won ($13.6 million). While the timing has fueled speculation that the scandal led to the split, LG Uplus maintained that the decision was purely procedural.
“The contract has expired,” an LG Uplus representative stated. “We currently have no plans to discuss or pursue a renewal.”
Kim Seon Ho Dropped From Another Ad Despite Apology
Meanwhile, Kim Seon Ho is seeing brands pull away once again, despite issuing a detailed apology and paying his back taxes.
Just a day after fashion brand Beanpole scrubbed teaser videos for its “2026 Spring Collection” featuring Kim from all official social media and YouTube channels, skincare brand La Roche-Posay is also reportedly letting its contract with the actor expire.
The brand famously stood by Kim during a personal controversy five years ago, initially making his ads private before reinstating them. However, following the recent tax evasion allegations, the brand has once again set its advertisements to private, signaling the gravity of the current situation.
The High Cost of Scandal
Legal experts warn that the financial toll could be massive for Kim Seon Ho.
Lawtalk News reported that most advertising contracts include morality clauses, allowing companies to terminate deals and claim damages if a model damages the brand’s image, even before a guilty verdict is reached.
Industry estimates suggest the penalties could be severe. If a top star commands an annual fee of 500 million won ($340,000) and a scandal breaks three months into the contract, they could be liable to return the remaining pro-rated fee of 375 million won ($255,000).
When factoring in potential damages for production costs, often two to three times the model fee, Kim Seon Ho could face a financial blow ranging from 500 million won to over 1 billion won ($340,000 to $680,000) if the allegations are fully substantiated.
Companies also face risks. If a contract is terminated prematurely and the actor is later cleared of wrongdoing, the brand could be held liable for wrongful termination damages.
Despite the controversy, Kim Seon Ho remains booked for several high-profile projects, including TVING’s Unfriend, Disney Plus’s Portraits of Delusion, and tvN’s May the Congressman Protect You (literal translation).
>> Kim Seon Ho vs. Cha Eun Woo: Why Their Agency Took Very Different Approaches to Tax Allegations
In the meantime, watch Kim Seon Ho in Catch the Ghost on Amasian TV for free.
