On January 22nd, the Korean entertainment industry was shaken by allegations of tax evasion against Cha Eun Woo, resulting in a tax assessment of over 20 billion won (approximately 356 billion VND). This is considered a record-breaking amount of back taxes in the Korean entertainment industry. The idol and his mother are suspected of setting up shell companies to evade personal income tax. Furthermore, Cha Eun Woo is also suspected of intentionally enlisting in the military to avoid legal consequences for his tax violations. The incident has shattered Cha Eun Woo’s image as a “spotless handsome man.”
In response to the serious accusations, Cha Eun Woo’s side denied any tax evasion and stated they have filed a request for a review of the tax assessment decision by the Korean National Tax Service. Although the review has not yet concluded, Cha Eun Woo has already suffered negative impacts on his career due to this controversy.
Cha Eun Woo Receives His First Bitter Thing After Being Accused of Tax Evasion. Photo: Sina.According to Nate, the cosmetics brand Abib has taken extremely firm and decisive action by deleting, hiding, and removing numerous images, videos, and posts related to their brand ambassador, Cha Eun Woo, from their official website and social media accounts. Abib’s drastic change of stance and handling of the 1997-born idol’s image shows that their partner is losing faith in him. Last year, Abib announced that they chose Cha Eun Woo as their global ambassador because the artist has a clean and elegant image that aligns with the brand’s values.
By the evening of January 22nd, Shinhan Bank had also hidden or deleted promotional videos and images featuring Cha Eun Woo. Previously, Cha Eun Woo had replaced Kim Soo Hyun as the brand ambassador for Shinhan Bank after the S-list actor was embroiled in controversy over alleged relationships with minors.
Furthermore, a source in the Korean entertainment industry revealed to Nate that the advertising industry is classifying Cha Eun Woo as a high-risk artist following the tax investigation by the Tax Bureau. They have begun cutting ties and considering canceling advertising deals with the handsome actor. If his endorsements are cut due to his personal life scandal, Cha Eun Woo faces significant compensation costs.
Nate assesses that Cha Eun Woo is in a precarious situation, on the verge of being overwhelmed by the personal income tax fraud scandal. If his appeal fails, Cha Eun Woo could potentially disappear permanently, erased from the Korean entertainment industry due to the tax evasion scandal.
The leading cosmetics brand Abib has deleted and hidden advertisements featuring Cha Eun Woo. Photo: Nate.
According to an announcement by authorities on the morning of January 22nd, the 4th Investigation Bureau of the Seoul Tax Service (South Korea) conducted a review of Cha Eun Woo’s entire personal income prior to his military enlistment in July 2025. During this process, the tax authorities discovered irregularities in the ASTRO idol’s tax payments. The investigation team suspects Cha Eun Woo of tax fraud through a shell company, intentionally restructuring his personal income to reduce taxes.
Specifically, an intermediary legal entity, A-1, established by the singer’s mother, exists between Fantagio – his official management company – and Cha Eun Woo. Fantagio signed an artist management service contract with company A. Cha Eun Woo’s entertainment income was shared between Fantagio, company A, and the idol himself. However, company A did not have actual business operations; it existed only in name – suspected to be a “shell company” established by Cha Eun Woo and his family to evade high tax rates. If paying personal income tax, artists face a maximum tax rate of approximately 45%. However, converting this income into business income would only result in a tax rate of around 20%.
Because company A could not prove its actual operations, Fantagio was ordered by the tax authorities to pay 82 billion won (approximately 1.5 trillion VND) for allegedly using fraudulent tax invoices. Since the profits of company A were believed to ultimately go to Cha Eun Woo, the tax authorities concluded that he had not paid over 20 billion won in personal income tax.
Cha Eun Woo is suspected of colluding with his mother to establish a shell company to evade personal income tax. Photo: Nate.
Faced with accusations of tax evasion and establishing a shell company to evade personal income tax, Cha Eun Woo’s side denies the allegations. The idol’s representative explained that Cha Eun Woo’s mother established company A out of concern for the instability that could affect her son’s career due to Fantagio’s frequent leadership changes. Company A is a legally registered artist management company, not a shell company, and directly involved in managing and protecting the artist’s rights.
Cha Eun Woo’s side stated that they have filed a request for a review of the reasonableness of the aforementioned tax decision. If the request is approved, the singer will not have to pay the 20 billion won back taxes. If rejected, Cha Eun Woo’s side may continue to appeal to the Tax Court or the Korean Tax Arbitration Board.
After Cha Eun Woo spoke out to explain, Korean media continued to expose the handsome idol’s deceitful behavior and deliberate concealment of the truth. According to reports, the registered address of Cha Eun Woo’s mother’s company is not a proper office, but a grilled eel restaurant. This restaurant has been run by Cha Eun Woo’s parents for many years.
Furthermore, Cha Eun Woo’s side was found to have requested the Tax Bureau to publicly release the investigation results after he had completed his military service. Therefore, the media suspected the idol was hiding in the military to avoid public scrutiny and legal consequences. These negative reports further tarnished Cha Eun Woo’s image.
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The registered address of Cha Eun Woo’s mother’s entertainment company is a grilled eel restaurant belonging to the actor’s family. (Image: KoreaBoo)
