Cha Eunwoo Faces Massive Tax Evasion Investigation in South Korea
The South Korean actor and ASTRO member, Cha Eunwoo, is currently under intense scrutiny from the National Tax Service (NTS) amid allegations of tax evasion. Authorities have reportedly issued a tax adjustment exceeding 20 billion won (approximately $13.5 million USD), one of the largest amounts ever levied against a celebrity in the country.
The investigation, initiated prior to Cha Eunwoo’s military enlistment in July of last year, centers around a company established by his mother. According to the NTS, this entity was allegedly used to artificially lower the artist’s tax obligations – a tactic increasingly observed in cases involving high-profile individuals.
A Common, Yet Controversial, Practice
The alleged scheme involves interposing a separate company, often founded by a family member, between the artist and their official agency. This company then enters into a service contract with the agency, facilitating a redistribution of income designed to reduce the artist’s personal tax burden. An exclusive investigation published by Edaily on January 22, 2026, revealed that Cha Eunwoo was subject to an intensive probe last spring by Division 4 of the Seoul Regional Tax Office, a unit specializing in large-scale tax fraud.
In Cha Eunwoo’s case, the company founded by his mother was positioned between the artist and his management agency, Fantagio. Fantagio reportedly signed a service contract with this intermediary company to support Cha Eunwoo’s artistic endeavors. Income was then divided among Fantagio, the mother’s company, and Cha Eunwoo himself.
However, the NTS has deemed the mother’s company a “shell company,” arguing it provided no genuine services. Investigators believe the primary goal was to reduce income tax – potentially by as much as 45% – by channeling earnings through a corporate entity subject to a significantly lower tax rate. The company’s registered address, located in a remote area of Ganghwa Island, further fueled suspicions, appearing incompatible with the demands of artist management. Despite registered imported vehicles and recorded expenses, authorities allegedly found no evidence of services distinct from those already provided by Fantagio.
Fantagio Also Faces Scrutiny
The investigation into the intermediary company has also impacted Fantagio. In August of last year, the Seoul Regional Tax Office imposed a fine of 8.2 billion won (roughly $5.4 million USD) on the agency, alleging the use of false invoices issued by Cha Eunwoo’s mother’s company. Fantagio’s request for preliminary reconsideration was subsequently denied.
After questioning both Cha Eunwoo and his mother, tax authorities concluded that the profits generated by the company ultimately benefited the artist, estimating unpaid income tax exceeding 20 billion won. At Cha Eunwoo’s request, the NTS reportedly delayed the official notification of the audit results until his military enlistment was complete.
Fantagio Responds to Allegations
On January 22, 2026, Fantagio released an official statement addressing the reports. “This is Fantagio. We are issuing this official statement regarding today’s news regarding the tax audit of our artist Cha Eunwoo,” the release stated. “The central point of this case concerns the recognition or not, for tax purposes, of the company established by Cha Eunwoo’s mother. This issue has not yet been the subject of a definitive conclusion or official assessment. We plan to provide detailed explanations as part of legal procedures relating to the interpretation and application of the law. In order for this matter to be resolved as quickly as possible, the artist and his tax advisors will cooperate fully. Cha Eunwoo will continue to scrupulously respect his tax and legal obligations as a citizen.”
Legal Challenges and Next Steps
The outcome of a preliminary review remains pending. If accepted, Cha Eunwoo would not be required to pay the assessed amount. However, rejection would necessitate payment, with the option to contest the decision through further legal channels, including the National Tax Service, the tax court, or the Audit and Inspection Bureau. Sources indicate that Cha Eunwoo’s legal team is considering withdrawing the current request to proceed directly to the tax court. At this stage, no final decision has been reached.
