One Instagram Post May Result In Prison Time For ASTRO’s Cha Eunwoo

Cha Eunwoo is facing criminal charges over a massive tax evasion case worth ₩20 billion KRW (about $13.8 million USD).

The controversy began when attorney Kim Jeong Gi spoke on YTN Radio’s Lawyer Lee Won Hwa’s Case X-File on the 30th. He revealed this is the largest tax retroactive charge ever on an individual entertainer in South Korea and one of the biggest worldwide.

“This is the largest tax retroactive charge ever imposed on an individual entertainer in South Korea and among the highest amounts globally,”
— Attorney Kim Jeong Gi

Cha Eunwoo’s income is estimated to be at least ₩100 billion KRW (about $68.9 million USD). If the case shows deliberate wrongdoing, criminal prosecution could follow.

“If intentional deception is revealed, he could be prosecuted by the prosecution for violating tax evasion laws and face imprisonment or heavy fines,”
“If the evaded tax exceeds ₩1.00 billion KRW (about $689,000 USD), the Act on the Aggravated Punishment of Specific Crimes applies, allowing for a prison term of at least five years.”
— Attorney Kim Jeong Gi

The investigation could also target Cha Eunwoo’s mother, Choi, who heads the corporation involved. Cha Eunwoo might be seen as an accomplice.

“Not only Cha Eunwoo’s mother, who is the head of the corporation, but Cha Eunwoo himself, as the actual beneficiary, could be investigated as an accomplice and subject to punishment,”
“The key issue in this case is who led and approved the tax evasion.”
— Attorney Kim Jeong Gi

An Instagram post by Cha Eunwoo showing a photo at an eel restaurant might also hurt his case.

“During trial, it could serve as circumstantial evidence that the corporate entity was deliberately concealed. Hiding the family-owned nature of the restaurant and promoting it as a favorite spot not only deceived the public but also inadvertently proved that the location was not actually an office.”
— Attorney Kim Jeong Gi

The Seoul Regional Tax Office’s Investigation Bureau 4 notified Cha Eunwoo last year about the ₩20 billion tax assessment. Authorities say Cha Eunwoo and his mother dodged 45% individual income tax by misusing a corporate entity with a 20% lower tax rate. Fantagio was also fined ₩8.20 billion KRW (about $5.65 million USD) for corporate tax last August.

Cha Eunwoo is appealing the tax ruling through an administrative review. On January 26, he posted an apology on Instagram.

“I sincerely apologize for causing concern and disappointment to many people due to recent events involving me,”
“This incident has led me to deeply reflect on whether I have been sufficiently rigorous in fulfilling my tax obligations.”