South Korean actor Cha Eun-woo under investigation for alleged US$13.6 million tax evasion

Actor and Astro member Cha Eun-woo, 28, is currently under investigation by South Korea’s National Tax Service (NTS) for tax evasion amounting to 20 billion won (US$13.6 million).

According to a report by Korean outlet Edaily on Thursday (Jan 22), Cha was subjected to an intensive investigation last year by the Seoul Regional Tax Office’s Investigation Division 4, a unit which typically handles major tax evasion cases. This audit took place in July 2025, prior to Cha’s enlistment in the military. The NTS later notified Cha that he owed additional taxes, including income tax, on charges of tax evasion. 

The allegations centre on the “one-person agency” established by Cha’s mother. Although the actor-singer is signed to management agency Fantiago, investigators found that a separate company – set up by his mother – was placed between him and Fantagio via a service contract. This meant that Cha’s earnings were divided between Fantagio, his one-person company, and Cha himself.

Tax authorities concluded that the company did not provide any actual services and was a “paper company” created to reduce the income tax owed. The corporate tax rate is significantly lower than the income tax rate of 45 per cent. 

According to the authorities, “The company’s registered address was located in a remote area of Ganghwa Island, which didn’t appear suitable for entertainment-related business, and it was difficult to consider it an actual office. While multiple imported cars were registered under the company and various expenses were processed, there was reportedly no differentiated service provided compared to Fantagio.”

As a result, both Cha and his mother were summoned for questioning. The tax authorities concluded that the financial benefits accrued through their company ultimately went back to Cha himself. The income tax amount that he had failed to pay amounted to 20 billion won.

The repercussions extended to Fantiago. After determining that the agency had processed false tax invoices issued by the company established by Cha’s mother, Fantagio was charged 8.2 billion won in additional taxes by the Seoul Regional Tax Office in August 2025. 

Fantagio released a statement on Jan 22, saying: "This matter has not yet been finally determined or notified, and we plan to actively explain our position through lawful procedures regarding the issues of legal interpretation and application."

It added that Cha and his representatives will cooperate with the investigations and that the actor will "continue, as a citizen of this country, to faithfully fulfill tax filings and his legal obligations”.

Cha is currently serving his military obligations and is scheduled to be discharged in January 2027.