Astro member and actor Cha Eun Woo has been notified by South Korea's National Tax Service of an additional tax assessment exceeding 20 billion won ($13.6 million) for alleged income tax evasion involving a family-owned company.
The Seoul Regional Tax Office completed an investigation into Cha Eun Woo's income structure during the first half of 2025, before his military enlistment in July of that year. According to reports, tax authorities discovered that a company established by Cha Eun Woo's mother, referred to as "Company A," was positioned between his management agency, Fantagio, and the star himself.
Under this arrangement, Cha Eun Woo's earnings were divided among three entities: Fantagio, his mother's company, and Cha Eun Woo personally. The National Tax Service concluded that Company A operated as a "paper company" that did not provide any actual services, according to allkpop.
Authorities determined that the structure was created to reduce tax obligations by channeling income through the company to benefit from a lower corporate tax rate of roughly 20 percent, compared to the 45 percent personal income tax rate.
Tax investigators cited the company's registered address on Ganghwa Island in Incheon as evidence that it was not suitable for entertainment-related business operations. Authorities noted that while multiple imported cars and various expenses were registered under the company, no differentiated services were provided compared to what Fantagio already offered.
After summoning Cha Eun Woo and his mother for questioning, the National Tax Service concluded that the profits from Company A ultimately flowed back to Cha Eun Woo, resulting in unpaid income taxes exceeding 20 billion won. This marks the largest tax surcharge ever imposed on a Korean celebrity, chosun reported.
The investigation extended to Fantagio, which was hit with an 8.2 billion won ($5.6 million) additional tax bill in August 2025 for processing false tax invoices issued by Company A.
Cha Eun Woo's agency, Fantagio, disputes the findings in an official statement released on January 22. The agency stated that no final decision has been issued and that they plan to provide explanations through lawful procedures regarding the matter. The company maintains that it is "formally registered as an entertainment agency" and is not a paper company.
Cha Eun Woo's side has filed a pre-assessment review appeal against the National Tax Service decision and is awaiting the results. The actor is currently fulfilling mandatory military service, which began in July 2025 and is scheduled to end in January 2027, as per mb.
