Astro’s Cha Eunwoo Faces Tax Evasion Allegations Amounting To $13.7 Million USD
Cha Eunwoo is facing a massive tax evasion investigation.
The National Tax Service (NTS) says he owes over ₩20 billion KRW (~$13.7 million USD) in additional taxes. This is one of the largest extra tax bills ever slapped on a K-pop star.
The tax audit took place before Eunwoo’s military enlistment last July. His team has formally objected and is waiting on a pre-assessment review to challenge the NTS ruling.
The problem centers on a one-person agency set up by Cha Eunwoo’s mother. Officials say it was used to lower income taxes by redirecting earnings through this company. This tactic is trending in recent celebrity tax cases.
This company, linked to Cha’s mom, acted like a middleman between him and his main agency Fantagio. Fantagio signed a service contract with it and split Eunwoo’s earnings among the company, the agency, and Eunwoo himself.
The NTS calls this company a “paper company” with no real service. The firm’s address was in a remote area on Ganghwa Island and didn’t appear fit for entertainment work. Imported cars were registered there, but no unique services were given beyond Fantagio’s usual work.
Because of this, Fantagio also got hit with a tax bill. They owe ₩8.2 billion KRW (~$5.6 million USD) for false tax invoices linked to the company set up by Eunwoo’s mom. They objected, but the taxes stood.
After questioning both Eunwoo and his mother, tax officers found the money gained was funneled back to Cha Eunwoo. Hence, the huge tax amount was unpaid. The NTS waited for Eunwoo’s military enlistment to finish before sending the official notice.
Cha Eunwoo’s side insists the accusations are wrong. They say the company was created because of frequent changes in Fantagio’s leadership and to protect Eunwoo’s career. They call it a legal cultural management agency, not a paper company.
“Due to frequent changes in Fantagio’s leadership, Cha Eunwoo’s mother felt the need to protect her son’s entertainment activities and therefore established a company to directly operate a management business. The company is not a paper company, but a legally registered cultural and entertainment management agency.”
— Cha Eunwoo’s representatives
If the pre-assessment review clears Eunwoo, he won’t have to pay. If rejected, the case can still go to the Tax Tribunal or other legal bodies. Eunwoo’s side may skip the review and head straight to the tribunal instead.
