ASTRO member and actor Cha Eun-woo is facing a major tax controversy in South Korea. Reports say the National Tax Service (NTS) has told him to pay more than 20 billion won (200억 원) in additional taxes, linked to possible unpaid income tax.
According to media reports on January 22, Cha Eun-woo was investigated through a strong tax audit by the Seoul Regional Tax Office before he enlisted. The report claims that even though he already had an entertainment agency, a separate company was set up under the name of his mother (and possibly connected to him), and this company signed a service contract with his agency.
The key suspicion is that this company may have been used to split or move income in a way that could reduce taxes. Income tax rates can be higher than corporate tax rates, so the report suggests the structure may have helped lower the total tax burden.
The report also claims the NTS viewed the company as a “paper company” that did not provide real services. It also says the NTS charged Cha Eun-woo’s agency Fantagio extra taxes as well, including VAT, and after questioning both Cha Eun-woo and his mother, the NTS concluded there may have been over 20 billion won in unreported income tax.
Because Cha Eun-woo is currently in the military, the timing of the news caused more online debate. Some people raised a “military-run” rumor, meaning they suspect he enlisted to avoid the controversy. However, there is no confirmed evidence for this claim, and his agency has not directly responded to that part.
Cha Eun-woo enlisted on July 28 last year after receiving acceptance to the Army military band in May. Reports also said the tax notice may have been delayed until his enlistment process was completed.
Fantagio released an official statement saying the issue is mainly about whether the company created by Cha Eun-woo’s mother should be treated as a real taxable business. The agency said the case is not final, and they will actively explain their position through legal procedures. Fantagio also argued the company is not a paper company and is officially registered as a business in the entertainment planning industry.
Cha Eun-woo’s side is reportedly challenging the decision through a formal review process. Since the legal steps are still ongoing, the final conclusion about tax evasion has not been confirmed yet.
