South Korean actor and ASTRO member Cha Eun Woo faces allegations of tax evasion exceeding 20 billion won ($13.6 million) after the National Tax Service issued a notice of additional income tax in January 2026.
The investigation centers on a company established by Cha's mother in October 2022, which the tax authorities believe functioned as a shell company to reduce his tax burden.
According to reports, Cha's entertainment income was distributed among three entities: his management agency Fantagio, the company registered under his mother's name, and Cha himself. Tax officials determined that this arrangement allowed Cha to benefit from lower corporate tax rates instead of the maximum personal income tax rate of 45 percent in South Korea, according to chosun.
The Seoul Regional National Tax Service Investigation Division, commonly known as the "chaebol grim reaper," conducted a high-intensity investigation into the matter in the first half of 2025, months before Cha enlisted in the military in July 2025. The investigation began while examining Fantagio's financial structure, which resulted in the agency being ordered to pay 8.2 billion won in additional taxes in August 2025.
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Cha's agency Fantagio released a statement acknowledging that the primary issue centers on whether the company established by Cha's mother qualifies as a legitimate taxpayer subject to taxation. Fantagio stated that Cha and his tax representatives would cooperate fully with authorities and that the matter has not yet been formally confirmed or officially notified, the Korea Times reported.
To contest the assessment, Cha hired law firm Sejong, a major legal firm that previously represented NewJeans in their unsuccessful contract termination lawsuit against their agency ADOR in 2025. Sejong previously handled NewJeans' case, which centered on claims that the group's trust relationship with ADOR had collapsed irreparably, allowing them grounds to terminate their exclusive contract without penalty. The court ultimately ruled against NewJeans in October 2025, determining the group had no valid grounds to terminate the contract.
Cha's agency also retained law firm Yulchon to handle related matters. Legal experts have indicated that the case's classification will determine the outcome—if prosecutors establish intentional tax evasion, Cha could face criminal charges, whereas tax avoidance would be treated as a civil dispute.
Cha has not publicly commented on the allegations since beginning military service with the military band on active duty, as per Koreaboo.
