ASTRO member and actor Cha Eun-woo is embroiled in tax evasion allegations totaling approximately 20 billion won. His agency, Fantagio, has also been fined 8.2 billion won by the National Tax Service.
Last year, the Seoul Regional Tax Office’s Investigation Bureau 4 conducted an intensive tax audit on Cha Eun-woo. The National Tax Service determined Cha avoided income tax by using a personal agency founded by his mother, leading to a tax levy of approximately 20 billion won. Reports indicate this is the largest tax charge ever imposed on a domestic celebrity.
Additionally, the National Tax Service concluded Fantagio received improper tax benefits in transactions with Cha’s personal agency and issued an 8.2 billion won tax penalty last year.
At the time, Fantagio stated, “After reviewing the related details with our legal representatives, we plan to prepare countermeasures.”
Some speculate Fantagio might file a claim for indemnity for the back taxes incurred due to Cha. However, enforcing such measures could be challenging given his significant role within the agency.
Regarding Cha Eun-woo’s alleged tax evasion, the agency stated, “We are in the process of verifying the facts in accordance with tax authorities’ procedures, and both the agency and the artist are sincerely cooperating with the investigation to the extent required.” They further emphasized their commitment to “take necessary actions responsibly based on the eventual legal and administrative judgments.”
Cha Eun-woo also commented, “I will faithfully engage in the upcoming tax-related procedures and humbly accept the final decisions of the relevant authorities, fulfilling my responsibilities accordingly.”
The main issue in this matter is whether the corporation established by Cha Eun-woo’s mother actively conducted business or merely served as a nominal entity for tax reduction purposes.
While the National Tax Service views the entity as a conduit for income distribution without providing actual services, Cha Eun-woo’s side maintains it is a legally registered management company performing substantial functions.
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