Cha Eun-woo faces W20b tax probe

Cha Eun-woo (Abib)

Actor and K-pop star Cha Eun-woo is facing allegations of large-scale tax evasion involving a company established by his mother, prompting major advertisers to quietly remove his promotional content.

Cha, 28, a member of boy group Astro and one of South Korea’s most sought-after endorsers, was recently notified by the National Tax Service Seoul Regional Office that he could owe more than 20 billion won ($13.6 million) in additional income tax following an intensive audit conducted in the first half of last year, according to industry sources.

The amount is believed to be the largest ever sought from an individual entertainer.

The investigation centers on a company established in October 2022 and registered as a management firm by Cha’s mother, identified by the surname Choi. At the time, the company’s listed address was in Bureun-myeon, Ganghwa-gun, Incheon — the same location as an eel restaurant run by Cha’s parents. The firm later relocated its address to an office in Nonhyeon-dong, Seoul, on Dec. 23 last year, while the family restaurant moved to Cheongdam-dong, Seoul, a month earlier.

The National Tax Service determined that the company functioned as a shell company that provided no substantive services to Cha and was allegedly used to distribute portions of his entertainment income under a corporate tax rate. This is lower than the top personal income tax rate of 45 percent.

Tax authorities reportedly summoned both Cha and his mother for questioning. The findings were formally delivered after Cha enlisted in the military in July 2025.

The probe emerged during a broader investigation into Fantagio, Cha’s agency, which was ordered in August last year to pay 8.2 billion won in additional taxes. Officials are said to have uncovered the alleged scheme involving the mother’s company while examining Fantagio’s financial structure.

Cha’s side has filed a formal appeal contesting the tax assessment.

Fantagio said in a statement Thursday that the key issue is whether the company established by Cha’s mother qualifies as a legitimate taxable entity.

“This matter has not been finalized or officially confirmed,” the agency said. “We will actively explain our position through lawful procedures and cooperate fully so the process can be concluded promptly. Cha Eun-woo will continue to faithfully fulfill his tax and legal obligations as a citizen.”

The advertising industry has begun distancing itself from the star. Shinhan Bank has made Cha’s commercials private on YouTube and other social media platforms. Skin care brand Abib also removed advertising videos featuring Cha and deleted related posts from Instagram and X. Cha currently represents several global and domestic brands, including Saint Laurent, Calvin Klein, LG Uplus and fried chicken chain Norang Tongdak.

Cha is scheduled to star later this year in the Netflix series “The Wonderfools.”