South Korean actor and ASTRO member Cha Eun Woo faces tax evasion charges of more than 20 billion won ($13.6 million) after the National Tax Service issued an additional income tax notice in January 2026.
The investigation centers on a company founded by Cha’s mother in October 2022, which tax authorities say operated as a shell company to reduce her tax bill.
According to reports, the proceeds from Cha’s show were distributed between three entities: his Fantagio management agency, the company registered under his mother’s name, and Cha himself. Tax officials determined that this deal allowed Cha to benefit from lower corporate tax rates instead of the top personal income tax rate of 45% in South Korea, according to chosun.
The Seoul Regional National Tax Service’s Investigation Division, commonly known as the “grim reaper of chaebol,” conducted a high-intensity investigation into the matter in the first half of 2025, months before Cha joined the military in July 2025. The investigation began by examining Fantagio’s financial structure, which led to the agency paying 8.2 billion won in additional taxes in August 2025.
Cha’s agency, Fantagio, released a statement acknowledging that the main question is whether the company founded by Cha’s mother qualifies as a legitimate taxpayer subject to taxation. Fantagio said Cha and his tax representatives will fully cooperate with the authorities and that the matter has not yet been formally confirmed or officially notified, Korea Times reported.​
To contest the assessment, Cha hired the Sejong Law Firm, a prominent law firm that had previously represented NewJeans in their unsuccessful contract termination lawsuit against their agency ADOR in 2025. Sejong had previously handled NewJeans’ case, which centered on claims that the group’s relationship of trust with ADOR had collapsed beyond repair, allowing them to terminate their exclusive contract without penalty. The court ultimately ruled against NewJeans in October 2025, determining that the group had no compelling reason to terminate the contract.
Cha’s agency also appointed the Yulchon law firm to handle related matters. Legal experts have indicated that the classification of the case will determine the outcome: If prosecutors establish intentional tax evasion, Cha could face criminal charges, while tax avoidance would be treated as a civil dispute.
According to Koreaboo, Cha has not publicly commented on the allegations since he began his military service with the active duty military band.
