Actor Cha Eunwoo Suspected of Evading 20 Billion Won in Taxes Using Mother's One-Person Corporation

Suspicion of False Service Contracts Between Fantagio and Mother's Corporation
Seoul Regional Tax Office Investigation Conducted Before Military Enlistment
Agency States, "Nothing Has Been Finalized... Will Actively Clarify Our Position"

Actor Cha Eunwoo is hosting the welcome dinner for the 2025 Asia-Pacific Economic Cooperation (APEC) Summit held at a hotel in Gyeongju last October. Photo by Yonhap News

Cha Eunwoo, a singer and actor currently serving in the military, is under suspicion of evading hundreds of billions of won in taxes by using a corporation registered under his mother's name. The National Tax Service has reportedly classified this as a typical tax evasion scheme that utilizes the “one-person agency” format and has notified him of an unprecedented tax assessment.

According to the tax industry and media reports on January 22, the Seoul Regional Tax Office’s Fourth Investigation Bureau conducted an intensive tax audit on Cha Eunwoo last year and imposed an additional tax assessment of approximately 20 billion won, including income tax. This is the largest amount ever imposed on an individual entertainer.

The National Tax Service reportedly determined that Cha Eunwoo had entered into a false service contract between his agency Fantagio and Corporation A, established by his mother, Ms. Choi, to disperse his income. By doing so, he was able to avoid the personal income tax rate, which can be as high as 45%, and instead benefit from a corporate tax rate that is more than 20 percentage points lower.

Corporation A, registered in Ganghwa Island, is suspected of being a “paper company” that did not actually provide management services. The National Tax Service found that Corporation A used several foreign vehicles under the company’s name and handled various expenses, but that Fantagio was solely responsible for supporting Cha Eunwoo’s entertainment activities.

In August of last year, the National Tax Service had already imposed an additional 8.2 billion won in value-added tax and other taxes on Fantagio.

Cha Eunwoo’s side immediately refuted the allegations. On this day, Fantagio stated, “The key issue is whether the corporation established by his mother is subject to actual taxation, and nothing has been finalized yet.” His representatives maintain that Corporation A is a legitimate company officially registered as a popular culture and arts planning business, and that it was established to protect the artist from frequent changes in Fantagio’s leadership in the past.

Currently, Cha Eunwoo’s side has filed a “pre-assessment review” to contest the National Tax Service’s decision and is awaiting the outcome. A pre-assessment review is a procedure requested by taxpayers who object to a tax notice before it is finalized. His representatives are also considering further legal action, such as filing an appeal with the Tax Tribunal, if the review request is not accepted.

Cha Eunwoo enlisted as an active-duty soldier in the Army in July of last year and is currently serving. Fantagio stated, “Cha Eunwoo will faithfully fulfill his legal obligations as a citizen,” adding, “We will actively clarify our position regarding the issues of legal interpretation and application.”