According to reports confirmed on January 23, Cha’s Gallery, a company founded by Cha Eunwoo’s mother and of which Cha is listed as an internal director, underwent a major structural change in September 2024. The company reportedly transitioned from a joint-stock company to a limited liability company (LLC), also changing its corporate name and organizational status.
Previously registered in Gimpo as a one-person agency, the company reportedly moved its address to Ganghwa Island around the same time. The new registered address is said to be the same as a restaurant run by Cha Eunwoo’s parents, raising questions about whether the entity operates as a brick-and-mortar business or exists primarily on paper.
Experts cited in the report suggest that the restructuring may have been intended to avoid mandatory external audits, which apply to corporations above a certain size but do not apply to LLCs. Additionally, LLCs are not required to disclose financial statements, making outside oversight more limited.
The move to Ganghwa Island also attracted attention. The area falls under a special regional classification that allows companies to avoid higher acquisition and registration taxes on real estate, a benefit not available in many metropolitan areas. Investigators reportedly noted that the company later added “real estate leasing” to its list of business purposes, further fueling speculation that tax benefits were being sought.
Based on these factors, the National Tax Service (NTS) concluded that the income may have been routed through a family business entity subject to lower corporate tax rates, rather than being taxed at the maximum personal income tax rate of 45%. As a result, the NTS reportedly issued an additional tax assessment totaling approximately ₩20 billion, the largest ever imposed on a Korean celebrity and among the highest globally.
The comparative data places the case alongside high-profile international tax disputes involving figures such as Fan Bingbing, Zheng Shuang, Cristiano Ronaldo, Willie Nelson and Shakira, ranking it among the top six largest celebrity tax assessments worldwide by reported amount.
In response, Cha Eunwoo’s agency Fantagio said this on January 22 the fundamental question lies in whether the company founded by his mother qualifies as a legitimate taxable person. The agency underlines this the issue has not been settled and said intends to actively present its position through legitimate procedures relating to the interpretation and application of tax legislation.
Cha Eunwoo, who joined the army in July last year and currently serves in the army band, is also preparing for the release of his next Netflix series The WONDERfools.
This was commented by legal expert Noh Jong-eon of Jonjae Law Firm registry documents confirm the company’s transition to an LLC and name change in September 2024. He noticed it LLCs are excluded from mandatory disclosure of external controls, suggesting that the restructuring may have been designed to avoid public reporting requirements. He added it such methods are not uncommon in cases where entities seek to reduce control during sensitive financial periods.
As the tax review process continues, the case has sparked a broader debate about celebrity liability, corporate transparency and the fine line between tax planning and tax avoidance.
Sources: Daum
