Cha Eun-woo, a singer and actor currently serving in the military band, has taken a short leave while facing a major controversy over suspected tax evasion involving more than 20 billion won.
According to OSEN on the 26th, Cha Eun-woo went on leave in early January and has already returned to his unit. This was his first leave of the new year, and it appears to have been a regular leave usually given after about 6–7 months of service, not a special reward leave.
His agency, Fantagio, confirmed: “It is true that Cha Eun-woo took military leave at the beginning of the year, and he has now returned.”
The timing of the leave drew more attention because recent reports raised allegations of “20 billion won in tax evasion.” Before enlisting last July, Cha Eun-woo was reportedly investigated by the Seoul Regional Tax Office (4th Investigation Bureau) and was notified that he would have to pay additional taxes exceeding 20 billion won. The report claimed this is the largest amount ever demanded from a celebrity in Korea.
After he returned to base, related news articles began appearing about two weeks later, causing major public reaction.
Fantagio has said it will “actively explain” its position, but since the first statement, it has avoided further detailed comments, saying it is difficult to confirm anything. Cha Eun-woo also has limited freedom to respond publicly because he is currently a soldier. However, because the issue is serious, there is growing interest in whether he will release a short statement through his agency or post directly on social media. He has continued using social media during service in the past, such as uploading promotional content when his solo mini album was released.
Meanwhile, it was reported that Cha Eun-woo has hired a major law firm to respond to the tax authorities. Reports said he appointed Shin & Kim (Law Firm Sejong) as his legal representative and plans to challenge the tax notice. Sejong is considered one of Korea’s top large law firms. Fantagio responded to questions about this by saying it could not confirm.
The National Tax Service reportedly believes a company (Company A) established by Cha Eun-woo’s mother signed a service contract with Fantagio but did not provide real services, calling it a “paper company.” Reports claimed the company’s registered address was an eel restaurant on Ganghwa Island, raising doubts about whether it could realistically handle entertainment-related work.
The tax authorities suspect that Cha Eun-woo and his mother created Company A to reduce income tax (which can be around 45%) by distributing income through the corporation and applying the lower corporate tax rate. They also reportedly viewed tax invoices Fantagio received from Company A as false, and imposed an additional 8.2 billion won in taxes. Cha Eun-woo’s side is currently challenging the decision and waiting for the result of a pre-assessment review.
Cha Eun-woo applied for the Ministry of National Defense military band in May last year, passed the selection process, and has been serving since July. His expected discharge date is January 27, 2027. He also has a Netflix series, The Wonder Fools, where he plays the lead role, scheduled to be released in the first half of this year.
