Astro member and actor Cha Eun Woo has been notified by South Korea’s National Tax Service of an additional tax assessment of more than 20 billion won ($13.6 million) for alleged tax evasion involving a family-run business.
The Seoul Regional Tax Bureau completed an investigation into Cha Eun Woo’s income structure during the first half of 2025, prior to his military enlistment in July of the same year. According to reports, tax authorities discovered that a company founded by Cha Eun Woo’s mother, called “Company A”, was positioned between his management agency, Fantagio, and the star himself.
Under this agreement, Cha Eun Woo’s earnings were split between three entities: Fantagio, his mother’s company, and Cha Eun Woo personally. The National Tax Service concluded that Company A operated as a “paper company” that provided no real services allkpop.
Authorities determined that the structure was created to reduce tax obligations by channeling income through the company to benefit from a lower corporate tax rate of around 20%, compared to the personal income tax rate of 45%.
Tax investigators cited the company’s registered address on Ganghwa Island in Incheon as evidence that it was unsuitable for entertainment-related business operations. The authorities noted that, although numerous imported cars and various expenses were registered with the company, no differentiated services were provided compared to what was already offered by Fantagio.
After summoning Cha Eun Woo and her mother for questioning, the National Tax Service concluded that Company A’s profits ultimately reverted to Cha Eun Woo, resulting in unpaid income taxes exceeding 20 billion won. This is the largest tax surcharge ever imposed on a Korean celebrity. chosun reported.
The investigation expanded to Fantagio, which was hit with an additional tax bill of 8.2 billion won ($5.6 million) in August 2025 for processing fake tax invoices issued by Company A.
Cha Eun Woo’s agency, Fantagio, disputes the findings of an official statement released on January 22. The agency said no final decision has been issued and that it intends to provide explanations through legal procedures on the matter. The company claims it is “formally registered as an entertainment agency” and not a paper company.
Cha Eun Woo’s side has appealed the National Tax Service’s decision and is awaiting the results. The actor is currently carrying out his mandatory military service, which began in July 2025 and will end in January 2027, as per mb.
