South Korean star Cha Eun Woo under investigation over alleged tax evasion

According to The Chosun DailyCha was notified last year by the Seoul Regional National Tax Service’s Investigation Bureau 4 that authorities were seeking to collect more than 20 billion won in unpaid taxes on suspicion of tax avoidance. The case centers on a company referred to as A Corporation, established in October 2022 and registered under the name of Cha’s mother, identified only by her surname Choi.

Investigators allege that while Cha maintained an exclusive management contract with his agency Fantagio, he also entered into a separate service agreement with A Corporation to support his entertainment activities. Under this arrangement, income generated from his work was reportedly distributed among Cha personally, Fantagio, and A Corporation. The National Tax Service concluded that the structure resulted in the application of lower corporate tax rates rather than higher personal income tax rates, which it classified as tax avoidance.

A Corporation was previously registered at an address associated with an eel restaurant on Ganghwa Island, a business reportedly operated by Cha’s parents. Records show the company changed its registered address to an office in Gangnam District, Seoul, on Dec. 23 last year. Around the same time, the family’s eel restaurant relocated and expanded to Cheongdam-dong, also in Gangnam. The timing of these changes has fueled speculation that the restructuring may be linked to the ongoing tax investigation.

The National Tax Service is said to have examined both Cha and his mother after determining that a substantial amount of income tax may have been omitted through the corporate structure. Cha’s representatives have since filed a pre-taxation review request, formally disputing the findings.

In a statement, Cha’s side argued that A Corporation “is not a paper company without substance but a legally registered corporation in the field of popular culture and arts planning.”

Fantagio also addressed the issue, saying the key question is whether the corporation qualifies as a legitimate taxable entity.

“This matter has not yet been finalized or officially notified, and we plan to actively provide explanations through legal procedures,” the agency said, adding that it plans to provide a full explanation through legal channels.

Authorities have not announced a final determination, and no criminal charges have been confirmed to date.

However, the South China Morning Post reported that several South Korean brands, including Shinhan Bank and cosmetics company Abib, have pulled or quietly sidelined advertising campaigns featuring Cha amid the allegations.

Born Lee Dong Min, 29-year-old Cha debuted as a member of the K-pop group Astro in 2016, two years after making his screen debut in the 2014 film “My Brilliant Life,” in which he appeared alongside Gang Dong Won and Song Hye Kyo.