Cha Eunwoo, who is currently serving in the military, has become embroiled in allegations of large-scale tax evasion. Reports claim the amount involved exceeds 20 billion won (approximately $13.6 million).
His agency, Fantagio, has denied that any conclusion has been reached and says the matter is still under legal review.
On January 22, Fantagio released an official statement saying, “We plan to actively explain our position on the issues related to the interpretation and application of the law in accordance with proper legal procedures.” The agency stated it will cooperate fully so the process can be resolved as quickly as possible.
The controversy began after media reports stated that the National Tax Service (NTS) had issued Cha Eunwoo a notice of additional income tax exceeding 20 billion won. According to these reports, the NTS believes the ASTRO member signed a management service contract with a corporation established under his mother’s name.
The tax authority allegedly judged that this company functioned as a shell company.
The NTS reportedly argued that Cha Eunwoo routed his income through this corporation to apply a lower corporate tax rate instead of the personal income tax rate, which can reach up to 45 percent. By doing so, the NTS claims the tax burden was reduced, which led to the additional tax assessment.
Fantagio explained, “The main issue in this case is whether the corporation established by Cha Eunwoo’s mother qualifies as an entity subject to substantive taxation.” They clarified, “This matter has not yet been finally determined or officially notified. The agency stated that the company was created for legitimate artist management purposes, especially during periods of agency instability.
Fantagio stressed that the matter involves differences in legal interpretation and application, not confirmed wrongdoing.
The agency also clarified that this case is still at the pre-assessment stage. Cha’s side has filed a formal objection and requested a pre-tax assessment review. The results of that review are still pending. This means no final ruling or final tax notice has been issued.
Fantagio added that Cha Eunwoo and his tax representatives will faithfully cooperate with the authorities throughout the process. The agency reiterated that the 28-year-old idol-actor will continue to fulfill all tax reporting and legal obligations as a citizen.
The National Tax Service has reportedly classified the company as a “paper company,” claiming it provided no real management services. However, this assessment is now being legally contested. The final outcome may change depending on the review and any future appeals.
If the objection is rejected, further appeals could be filed with the National Tax Tribunal or the courts. Similar cases involving other high-earning celebrities and family-run corporations have previously resulted in large tax payments.
Cha Eun-woo enlisted as an active-duty soldier in July of last year and is currently serving in the military. He is scheduled to be discharged in January 2027. The case continues while he remains on active service.
On the work front, he will be seen in the Netflix original series, The Wonderfools, with Park Eun Bin this year.
