ASTRO member Cha Eun-woo is under suspicion of ₩20 billion (approximately $15 million) in alleged tax evasion, prompting close observation from the advertising industry.
On the 22nd, Abib, a skincare brand endorsed by Cha Eun-woo, set his promotional videos on its YouTube channel to private.
All videos featuring Cha Eun-woo have since disappeared from Abib’s official YouTube channel, along with social media posts that announced him as an ambassador.
The brand had previously announced Cha Eun-woo as an ambassador in August of last year.
That same day, Edaily reported that Cha Eun-woo underwent an intensive tax investigation by the Seoul Regional Tax Office’s Investigation Division 4 last year on tax evasion charges and was subsequently notified of a tax levy of approximately ₩20 billion for income and other taxes.
This levy represents the largest tax amount ever imposed on an individual entertainer.
Cha Eun-woo and his agency, Fantagio, reportedly entered into an entertainment support service contract with ‘B Corporation,’ a company established by his mother, identified as ‘A’. The National Tax Service concluded that Cha Eun-woo and ‘A’ employed tactics to reduce the income tax rate to 45%.
Fantagio stated, “The main issue is whether the corporation established by his mother is subject to actual taxation,” adding that “It is not a finalized or notified matter yet, and we plan to actively clarify the issues related to the interpretation and application of the law through appropriate procedures.”
Public opinion surrounding Cha Eun-woo, however, remains cold. The enormous tax amount and his previously unblemished public image have contributed to public antipathy.
Cha Eun-woo actively models for various brands, including those in beauty, finance (Shinhan Bank), fashion (Saint Laurent, Calvin Klein), and distribution (Bodyfriend, Norang Tongdak, LG Uplus), leading the advertising industry to closely monitor the unfolding controversy.
