Actor and K-pop star Cha Eun-Woo is currently under investigation by South Korea's National Tax Service (NTS) after facing allegations of tax evasion amounting to 20 billion won (around P805 million).
According to an exclusive report published by South Korean media outlet Edaily on January 22, the singer-actor was first investigated in July 2025. Following the investigation, Eun-Woo was audited on charges of tax evasion and was told to pay his taxes, including income taxes.
The report explained that the issue centers on a paper company established by Eun-Woo’s mother, identified only as Ms. Choi. The company allegedly entered into a contract with his agency, Fantagio, to support his entertainment activities. Under this setup, income earned from his work was reportedly divided among Eun-Woo, Fantagio, and the established company, based on a pre-agreed ratio.
After reviewing the arrangement, South Korea’s NTS concluded that the company had no actual business operations and functioned as a shell entity. Authorities believe it was created so that income could be taxed under a lower corporate tax rate of about 20%, instead of the personal income tax rate, which can reach as high as 45%.
A tax industry insider cited in the report noted that the company’s registered address was in Ganghwa Island, Incheon, which is an area not typically associated with entertainment-related business activities. The NTS also reportedly summoned both Eun-Woo and his mother separately during the investigation.
Following this, the tax authority determined that the profits earned by the company ultimately flowed back to the actor. Based on its findings, the NTS estimated that the amount of evaded income tax exceeded 20 billion won (around ₱805 million).
The Edaily report further noted that the NTS allegedly waited to send the detailed tax audit notice at Eun-Woo’s request until after he had completed his military enlistment.
On January 22, Eun-Woo’s agency, Fantagio, released an official statement addressing the issue. The agency said the main question in the case is whether the company established by his mother qualifies as a legitimate taxpayer.
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“The core issue of this matter lies in whether or not the company set up by Cha Eun Woo's mother is eligible for taxation. The suspicions raised have not been confirmed nor declared true, and through the appropriate legal measures, we plan to identify any subjective interpretations of the laws and justify the decisions made,” the statement read.
Fantagio also said that Eun-Woo and his tax representatives would fully cooperate to ensure that all necessary procedures are completed promptly. The agency added that the singer “promises to earnestly fulfill his duties to report his earnings as a citizen of the Republic of Korea.”
Amid the controversy, several international media outlets reported that parts of South Korea’s advertising industry have begun distancing themselves from the actor. As of this writing, Shinhan Bank has set advertisements featuring Eun-Woo private on its YouTube channel and other social media platforms. Skincare brand Abib has also made commercials starring him private on YouTube, while his images remain visible on the brand’s global accounts and official website. Posts announcing him as the brand’s ambassador on X were also deleted.
Despite the ongoing issue, Eun-Woo remains slated to appear in Netflix’s upcoming superhero comedy series The Wonderfools, set to be released this year.
The singer enlisted in July 2025 and has been serving as a member of the military band after finishing basic training. He is scheduled to be discharged in January 2027.