Idol and actor Cha Eun-woo (real name Lee Dong-min), a member of the group Astro, previously known for his unblemished image, is now embroiled in allegations of tax evasion totaling over ₩20 billion, marking the biggest crisis of his entertainment career.
The Seoul Regional Tax Office’s Investigation Bureau No. 4 conducted an intensive tax audit on Cha Eun-woo last spring regarding the alleged tax evasion. He subsequently received notice of approximately ₩20 billion in tax arrears.
This represents the largest amount ever levied against a celebrity. The National Tax Service suspects that Cha Eun-woo and his mother established a fictitious paper company to reduce their income tax by 45%. By using a family-operated company ‘A’, they allegedly evaded taxes by applying a corporate tax rate that is more than 20% lower than the income tax rate.
There is also controversy surrounding the address of this company. Although the company’s official registration for entertainment planning business was in Gimpo, Gyeonggi-do, on June 15, 2022, reports indicate the address was moved to an eel restaurant in Ganghwa-do after the company reorganized as a limited liability company and changed its nature and name in 2024.
Critics speculate that the company might have been trying to avoid the heavy acquisition and registration taxes (three times the basic rate) levied on real estate purchases by locating in Ganghwa-gun, which is classified as a growth management area under the Metropolitan Area Readjustment Planning Act.
Adding to the suspicion, the paper company’s address was an eel restaurant allegedly run by Cha Eun-woo’s family, and claims surfaced that Cha Eun-woo promoted this restaurant without disclosing his connection to it four years ago. JTBC’s ‘Food Battle – Let’s Eat’ also featured the establishment as ‘Cha Eun-woo’s favorite restaurant’.
Furthermore, reports have surfaced that the National Tax Service delayed notifying the investigation results until his enlistment in July following a request from Cha Eun-woo’s side, reigniting debate over alleged “military run” controversies. Particularly, his role as a host at the state’s APEC summit welcome dinner in October is drawing renewed criticism.
Cha Eun-woo’s side is reportedly challenging the tax authority’s decision and has requested a pre-assessment review. If the allegations are confirmed, he could face irreparable damage to his reputation as the celebrity with the largest alleged tax evasion amount in Korea. This crisis marks a major downturn in Cha Eun-woo’s career after a decade of unblemished success.
