Singer and actor Cha Eun-woo has become embroiled in tax evasion allegations amounting to 20 billion KRW. Although the tax claim has not been finalized, advertisers are distancing themselves, and his upcoming projects face potential setbacks.
The fashion brand Marithé François Girbaud, for which Cha Eun-woo serves as a model, has made his images and videos private on its official accounts.
Before this, skincare brand Abib and Shinhan Bank, also associated with Cha Eun-woo, had already made their posts private. While the reasons for deleting Cha’s related posts remain undisclosed, the controversy surrounding the tax evasion allegations is suspected to have prompted their removal.
Cha Eun-woo underwent an intensive investigation last year as part of a tax audit by the Seoul Regional Tax Office, and subsequently received a notice of approximately 20 billion KRW in additional tax payments from the National Tax Service.
As this marks the largest additional tax a Korean entertainer has ever faced, it has sparked significant controversy. Given his reputation for outstanding looks and a clean image, which led to numerous brand endorsements, the potential compensation for breach of contract could be substantial.
If a model damages a brand’s image, advertisers may terminate contracts and claim damages. Speculation suggests that if a court legally confirms the “tax evasion allegations” as intentional, the penalty could reach up to 100 billion KRW, including compensation for production costs.
This controversy has affected not only the advertising industry but also Cha’s upcoming projects. He had completed filming for the Netflix series ‘The Wonderfools’ before his enlistment. It remains to be seen whether the project, unexpectedly impacted by the main actor’s tax evasion allegations, will be released as scheduled in the second quarter of this year.
Regarding the tax evasion allegations, Cha Eun-woo’s agency, Fantagio, stated, “The matter is currently under verification in accordance with tax authority procedures, and both the agency and the artist are faithfully participating in the investigation within necessary limits. We will responsibly take necessary measures based on future legal and administrative judgments.”
