Singer and actor Cha Eun-woo is embroiled in allegations of ₩20 billion tax evasion and military evasion.
On the 22nd, E-Daily reported that Cha Eun-woo underwent a high-intensity tax audit by the Seoul Regional Tax Office last year on suspicion of tax evasion. The National Tax Service subsequently notified him of a tax collection amounting to approximately ₩20 billion in income tax, among other charges.
This amount is the largest ever levied on an individual entertainer.
Cha Eun-woo and his mother, who founded Corporation B, signed a contract with Fantagio for support in entertainment activities. The National Tax Service suspected Cha Eun-woo and his mother implemented schemes to reduce income tax by up to 45%.
Regarding this, Fantagio, Cha Eun-woo’s agency, stated, “The main issue is whether the corporation founded by his mother is subject to actual taxation.” The agency added, “The matter has not been finalized or officially communicated yet, and we plan to actively clarify it through proper legal procedures related to the interpretation and application of the law.”
They continued, “We will sincerely cooperate with the artist and tax agents to ensure the process can be completed promptly.” They also added, “Cha Eun-woo promises to diligently fulfill his tax reporting and legal obligations as a citizen.”
Against this backdrop, suspicions have emerged that Cha Eun-woo chose to enlist in the military as a means to avoid the tax controversy.
Reports have surfaced alleging that the National Tax Service delayed issuing the tax investigation report until Cha Eun-woo’s enlistment process was completed, reportedly at his request.
In response, Fantagio told Xportsnews, “We have nothing further to add beyond our official position.”
As Cha Eun-woo’s tax evasion allegations emerged, fans both domestically and internationally reacted with comments such as, “Shocked by the news about Cha Eun-woo and even more by the scale,” “It’s a relief they’re actively clarifying,” “Let’s wait since it hasn’t been finalized,” and “Concerned about the impact on his image.”
