Cha Eunwoo (Photo Credit /Fantagio)
Cha Eun-woo Tax Evasion Scandal Shocks Fans
Cha Eun-woo tax evasion scandal has sent shockwaves through the K-pop world. The Cha Eun-woo tax evasion scandal involves a staggering ₩20 billion (approx. $15 million USD) in alleged unpaid taxes, making it one of the most dramatic financial controversies in K-pop history.
The ASTRO member and actor is under scrutiny for using a family-run company to divert income and reduce tax liability.
According to reports from several Korean news media outlets including E-Daily, Seoul Shinmun and Yonhap News and Money Today, the scandal centers on a company founded by Cha Eun-woo’s mother, which allegedly acted as a “paper company” to split income and avoid Korea’s high personal income tax rates.
Allegations Surrounding Family-Run Corporation
- The National Tax Service (NTS) claims Cha Eun-woo used a 1-person agency founded by his mother to divert income from his entertainment activities.
- The agency allegedly signed a service contract with Fantagio (his official label), allowing income to be split among Fantagio, the agency, and Cha himself.
- According to the news reports, NTS believes the agency did not perform actual services and was created solely to benefit from lower corporate tax rates (approx. 25%) instead of personal income tax rates (up to 45%).
- The total amount under scrutiny exceeds ₩20 billion, the highest ever for a Korean celebrity.
Military Enlistment Timing Sparks Controversy
- Cha Eun-woo enlisted in July 2025, just before the tax investigation results were delivered.
- Critics speculate the timing may have been strategic, with some labeling it a “military dodge.”
- NTS reportedly waited until enlistment was complete before issuing the tax notice.
Response from Cha Eun-woo and Fantagio
- Fantagio stated the issue is “a matter of legal interpretation” and not a confirmed violation.
- Cha Eun-woo has filed a pre-assessment review to contest the tax ruling.
- The agency insists the company is legally registered and not a shell entity.
- Fantagio also received a separate ₩8.2 billion tax bill in 2025 related to similar accounting practices.
❓ FAQ
Q: What is Cha Eun-woo accused of in the tax scandal? A: He allegedly used a family-run company to divert income and reduce tax liability, leading to a ₩20 billion tax bill.
Q: Is Cha Eun-woo’s military enlistment related to the tax investigation? A: Some speculate the timing was strategic, but no official link has been confirmed.
Q: Has Cha Eun-woo responded to the allegations? A: Yes, he filed a legal review and claims the company is legitimate and not a shell entity.
🧾 Author Information
Author: Allen Shin
Position: Editor, Kpopbreaking.com
Email: worldpopkorea@gmail.com
Last Updated: January 23, 2026
🏁 Final Summary
The Cha Eun-woo tax evasion scandal has become one of K-pop’s most shocking financial controversies. With ₩20 billion at stake, fans and media await the outcome of his legal challenge.
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