NTS alleges actor Cha Eun-woo's mother runs shell company for tax reduction purposes

A company owned by the mother of actor Cha Eun-woo, which tax authorities have reportedly alleged may function as a shell entity for tax purposes, was registered at an address belonging to an eel restaurant in Gimpo, Gyeonggi.

Actor Cha Eun-woo serves as host during the welcome dinner for the 2025 Asia-Pacific Economic Cooperation summit at the Lahan Select Gyeongju hotel in Gyeongju, North Gyeongsang, on Oct. 31, 2025. [YONHAP]

A company owned by the mother of actor Cha Eun-woo, which tax authorities have reportedly alleged may function as a shell entity for tax purposes, was registered at an address in Gimpo, Gyeonggi, which an online listing shows belongs to a restaurant and another business.

According to an online database operated by the Korea Creative Content Agency (Kocca), Cha's mother's company was registered in June 2022 under an address belonging to an eel restaurant and another business in Gimpo, media outlet My Daily first reported on Friday.

The report came after online users claimed that the address of her company led to an eel restaurant on Ganghwa Island in Incheon.

Cha's agency, Fantagio, had previously said Cha's mother ran a legitimate business that was registered as an entertainment management company as required by Korean law, according to My Daily.

Fantagio declined to comment on the accuracy of her company's registration, saying it was “unable to confirm” the matter.

The National Tax Service (NTS) notified Cha that he owed more than 20 billion won ($14 million) in additional income taxes, media outlet Edaily reported on Thursday.

The NTS alleges that Cha's mother established an entity that split the income between Cha, Fantagio and her company. Tax authorities determined, however, that her company did not provide substantive services and instead served as a paper company to reduce the tax rate levied on Cha's income.

Fantagio said in a statement on Thursday that the case hinges on whether the company established by Cha's mother qualifies as a legitimate taxable entity.

“The case has not yet been finally determined or formally notified, and we will actively present our position through appropriate legal procedures regarding issues of legal interpretation and application,” the agency said.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]