Major Companies Sever Ties With ASTRO’s Cha Eunwoo Following Tax Evasion Controversy

Large Corporations Distance Themselves From ASTRO's Cha Eunwoo Amid His Tax Evasion Scandal

Cha Eunwoo is facing serious backlash over a massive ₩20.0 billion KRW (about $14 million USD) tax evasion scandal. The heat is on as the advertising world is pulling away fast.

SSG.com, which named Cha Eunwoo as their exclusive beauty model last year, has already made all his videos private on their YouTube channel. No official reason was given, but the move clearly follows the tax evasion suspicions.

This isn’t the first brand to drop him. Skincare brand Abib, Shinhan Bank, Marithé François Girbaud, Daesung MyMac, and others in finance, fashion, and education sectors have also made ads and posts featuring Cha Eunwoo private or removed them altogether.

Even the Ministry of National Defense pulled his content from the “KFN Plus” YouTube channel where he served as a storyteller.

The controversy began after Seoul Regional Tax Office investigated Cha Eunwoo last year. The probe focused on a one-person agency set up by Cha Eunwoo’s mother. His income was divided through this agency, Fantagio, and himself by service contracts — apparently to lower his tax rate.

The National Tax Service believes the agency was just a paper company offering no real services. The scheme reportedly reduced his income tax by 45% by shifting income to a corporation taxed at a much lower rate, using a legal loophole.

Cha Eunwoo’s agency, Fantagio, and his team are pushing back.

“The main issue in this matter is whether the corporation established by Cha Eunwoo’s mother is subject to actual taxation. This is not a finalized or notified matter, and regarding the interpretation and application of the law, we will actively clarify the issues through proper procedures. The artist and tax representatives will sincerely cooperate to ensure the process concludes promptly.”
— Fantagio statement

Four days after the scandal blew up, Cha Eunwoo apologized.

“I sincerely apologize for causing concern and disappointment to many people due to recent issues related to me. This has become an opportunity for me to deeply reflect on whether I have been sufficiently strict in fulfilling my duty to pay taxes as a citizen of the Republic of Korea.”
— Cha Eunwoo

Fantagio also promised change:

“We will review our artist management system again due to this matter and will strengthen and supplement necessary systems to prevent similar controversies from recurring.”
— Fantagio

On the 27th, Fantagio added:

“The current issue is under investigation by tax authorities to confirm the facts. Both the agency and artist are fully cooperating within the necessary scope. If legal or administrative decisions become clear, we will responsibly take necessary actions based on the results. We earnestly request refraining from baseless speculation, spreading unverified information, and excessive interpretations regarding the claims and suspicions raised.”
— Fantagio

The scandal isn’t showing signs of cooling as more companies cut ties and the investigation continues. Fans and followers are watching closely.

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