ASTRO's Cha Eun-Woo ACCUSED Of Tax Evasion Worth $13.7 Million For Company In Mother's Name - Agency REACTS

ASTRO member Cha Eun-Woo, who will soon be seen in Netflix show The Wonderfools, has reacted to allegations of tax evasion amounting to over 20 billion KRW (about $13.7 million), after reports came in that the 28-year-old K-pop idol-turned-actor was under investigation by the National Tax Service. On January 22, Eunwoo's name popped up in one of the largest additional tax assessments, including income tax ever imposed on a Korean celebrity. Eunwoo is currently serving his mandatory military service, and the assessment is reportedly part of a tax audit conducted before he enlisted in July last year. Eunwoo has now issued a statement on the matter through his agency, Fantagio.As per Korean media, Eunwoo's team has officially rejected the decision.

The singer-actor is now awaiting the outcome of a pre-assessment review requested to challenge the National Tax Service's ruling.

About tax reassessment

On Thursday, OSEN reported that Eunwoo had been notified by the National Tax Service of a tax reassessment. Fantagio later told the media outlet, "We are currently gathering information and preparing a statement. We will announce our official position shortly."

Cha Eun-Woo's so-called "one-person agency" details

Koreaboo reported that suspicion arose around his one-person agency after officials claimed it was aimed at reducing income taxes. Infact, allegations follow a pattern similar to recent tax evasion cases involving celebrities such as Sung Si-Kyung and Ok Joo-Hyun, using so-called "one-person agencies."Under this setup, despite being signed to an official entertainment agency, the celebrity or their family establishes a separate company that signs a service contract with the main agency, allowing income to be redistributed in a way that lowers tax liability. In Eunwoo's case, a corporation (A Corporation) established by his mother was inserted between Fantagio and the star and the contract was meant to provide support services for his entertainment activities. Even Eunwoo's earnings were reportedly divided among Fantagio, A Corporation, and himself.

Fantagio's statement on Cha Eun-Woo's alleged tax evasion

Hello, this is Fantagio. We are issuing an official statement regarding today’s reports related to the tax audit of our artist Cha Eunwoo. The core issue in this matter is whether the corporation established by Cha Eunwoo’s mother constitutes a substantive taxable entity. This matter has not yet been finally confirmed or officially assessed, and we plan to actively provide explanations through lawful procedures regarding issues related to the interpretation and application of the law. In order for this process to be concluded as swiftly as possible, the artist and his tax representatives will cooperate diligently. Cha Eunwoo promises that he will continue to faithfully fulfill his tax reporting and legal obligations as a citizen. Thank you.