Cha Eun-woo's tax evasion case: Everything we know so far
What's the story
Cha Eun-woo, a member of the popular K-pop group ASTRO, is currently embroiled in a major tax evasion scandal. The 28-year-old singer and actor is accused of evading taxes worth over 20 billion KRW (approximately $13.7 million). The case is reportedly among the biggest additional income tax assessments ever imposed on a Korean celebrity.
Investigation initiation
What sparked the investigation into Eun-woo's taxes?
The investigation into Eun-woo's taxes was reportedly initiated by the National Tax Service (NTS) last July, just before he enlisted for mandatory military service. The NTS suspected that a "one-person agency" set up by Eun-woo and his family was being used to evade income taxes. This type of agency is often established by celebrities or their families to redistribute income in a way that minimizes tax liability.
Agency specifics
Details about Eun-woo's '1-person agency'
Eun-woo reportedly set up a corporation under his mother's name, which was sandwiched between his main agency, Fantagio, and him. This corporation was allegedly established to provide support services for his entertainment activities. His earnings were divided among Fantagio, this corporation, and himself. However, Fantagio has denied these allegations, stating that the core issue is whether the corporation constitutes a substantive taxable entity.
Legal proceedings
Eun-woo's legal team and public apology
Eun-woo has reportedly hired the top law firm Sejong to challenge the NTS's assessment. His legal team is now focusing on proving that his mother's corporation was not a shell entity, but a legitimate business. On Monday, January 26, he issued a public apology on his Instagram. "I sincerely bow my head and apologize for causing concern and disappointment to many people due to various recent matters involving me."
Apology
'I was worried that a lengthy explanation might...'
Eun-Woo continued, "I have deeply reflected on whether my attitude toward my duty as a citizen of the Republic of Korea, particularly regarding tax payments, was sufficiently rigorous." "I was worried that a lengthy explanation might sound like an excuse or even cause further fatigue, but I came to the conclusion that it is my duty to address this matter directly." "In the future, I will reflect on myself more rigorously and live with a greater sense of responsibility."
Career consequences
Impact on Eun-woo's career and brand endorsements
The tax evasion scandal has reportedly affected Eun-woo's career and brand endorsements. Brands such as Shinhan Bank, Bodyfriend, Abib, and Marithe Francois Girbaud have reportedly paused or deleted advertisements featuring him. His upcoming K-drama, The Wonderfools on Disney+, is also facing uncertainty due to the controversy.