Singer and actor Cha Eun-woo is under scrutiny for alleged tax evasion, with his donation amounts drawing attention for being notably small compared to the additional taxes.
It was recently revealed that Cha Eun-woo was notified of approximately 20 billion won in additional taxes, including income tax. Last year, the Seoul Regional Tax Office conducted an intense tax investigation on him over tax evasion allegations. The 20 billion won figure represents the largest tax amount ever imposed on a celebrity in Korea, causing greater shock given Cha Eun-woo’s controversy-free public image since his debut.
Reports indicate that a corporation established by Cha Eun-woo’s mother and his agency Fantagio signed a service contract to support his entertainment activities, with income split among Fantagio, the mother’s corporation, and Cha Eun-woo. The National Tax Service reportedly deemed this corporation a non-existent paper company.
Regarding this, Fantagio stated, “The core issue is whether the corporation established by the mother is subject to substantive taxation,” adding, “It has not been finalized or notified, and we plan to actively clarify the issue concerning the interpretation and application of the law through proper procedures.”
Subsequently, controversy arose when the address of the corporation established by Cha Eun-woo’s mother was changed to a limited liability company and relocated to a restaurant previously operated by Cha Eun-woo’s family. Accusations also emerged that Cha Eun-woo might have enlisted in the military to avoid criticism related to the “tax evasion controversy,” but the agency has remained silent.
Amidst this, Cha Eun-woo’s donation amounts are also under scrutiny for being small compared to the additional tax. Some reactions express a sense of “betrayal.”
Cha Eun-woo donated approximately 150 million won, including 30 million won in 2020 to support COVID-19 relief, 10 million won in 2023 for Lou Gehrig’s disease patients, and 100 million won last year for wildfire recovery. He also donated the proceeds from his first solo photo exhibition, but the amount was not disclosed.
Facing a tax notice exceeding 20 billion won, Cha Eun-woo’s relatively small donation amount has sparked negative reactions, including comments such as “Compared to his tax evasion, it’s incredibly trivial,” “He seems consistently frugal with money,” and “Looking at it this way, it’s a cost-effective donation.”
