ASTRO member and actor Cha Eun Woo is facing growing attention after reports revealed that he has been notified of a tax assessment exceeding 20 billion won, prompting swift reactions from the advertising industry.
On January 22, a local media outlet reported that Cha Eun Woo underwent an intensive tax investigation by the Seoul Regional Tax Office’s Investigation Division 4 last year. The division is known for handling large-scale tax evasion cases involving high-income individuals and major corporations.
Authorities Question Income Structure Involving Family Corporation
According to the report, tax authorities focused on the income distribution structure between Cha Eun Woo, his agency Fantagio, and a private corporation established by his mother.
The corporation reportedly signed service agreements with Fantagio under the pretext of supporting Cha Eun Woo’s entertainment activities. His earnings were then divided among Fantagio, the family corporation, and Cha Eun Woo personally.
Investigators concluded that the corporation may not have provided substantial services and classified it as a possible paper company. Authorities suspect that income which should have been taxed as personal earnings was instead routed through the corporation to benefit from lower corporate tax rates rather than the higher individual income tax rate, which can reach up to 45 percent.
Special Investigation Unit Raises Serious Implications
The case drew further attention as the investigation was conducted by Investigation Division 4, often referred to as the “corporate grim reaper” within the National Tax Service. The unit typically handles high-profile tax evasion tips, slush fund cases, and large-scale financial misconduct.
Being reviewed by this division is widely seen as an indication that the case involves more than routine accounting issues, raising concerns about the seriousness of the allegations.
Agency Responds, Says Final Decision Not Yet Confirmed
In response, Cha Eun Woo’s representatives released an official statement clarifying that the matter has not yet been finalized.
They stated that the central issue concerns whether the family-established corporation qualifies as a legitimate taxable entity and emphasized that no final ruling or tax notice has been confirmed. The agency added that they will actively cooperate with authorities and provide explanations through proper legal procedures.
They further stated that Cha Eun Woo and his tax representatives are fully cooperating to resolve the matter as quickly as possible.
Advertisers Begin Taking Precautionary Measures
Despite the clarification, reactions from the advertising industry were swift.
OSEN confirmed that skincare brand Abib switched several Cha Eun Woo-related videos on its official YouTube channel to private within hours of the report being released. The videos are currently inaccessible, displaying notices indicating that they are no longer publicly available.
While Cha Eun Woo’s ambassador images remain on the brand’s official website, the timing of the video removals has fueled speculation that the move was a precaution in response to the controversy.
Industry Watches Closely as Cha Eun Woo Serves in Military
Currently serving in the military after enlisting in July last year, Cha Eun Woo remains the face of multiple brands across finance, fashion, beauty, and retail sectors.
With his agency pledging full cooperation and clarification, industry insiders are now closely monitoring how advertisers and partners will respond as the investigation continues.
Meanwhile, Cha Eun Woo is scheduled to be discharged in January 2027. He is also set to return to the screen later this year through Netflix’s upcoming series “Wonderfuls.”
As the case remains under review, attention continues to focus on whether the allegations will be resolved as a legal dispute over tax interpretation or escalate into a more serious outcome.