Cha Eun-woo Faces Investigation for Alleged $13.6 Million Tax Evasion

South Korean actor and singer Cha Eun-woo, known for his role in the group Astro, is under investigation by the National Tax Service (NTS) for alleged tax evasion totaling approximately $13.6 million (20 billion won). The inquiry, initiated by the Seoul Regional Tax Office, focuses on claims that Cha and his mother established a “one-person agency” to evade taxes.

The investigation began in July 2025, prior to Cha’s military enlistment. Reports indicate that the NTS conducted a thorough audit which revealed discrepancies in Cha’s tax filings. The agency later informed him of additional taxes owed, primarily related to income tax, which stemmed from the use of a company set up by his mother.

Details of the Allegations

According to findings reported by Edaily, the company established by Cha’s mother was allegedly structured to create a financial barrier between Cha and his management agency, Fantiago. This arrangement reportedly allowed Cha’s earnings to be split among Fantagio, his mother’s company, and himself, which raised suspicions among tax authorities.

The NTS described the company as a “paper company,” suggesting it was created primarily to minimize tax liabilities. Investigators noted that the business’s registered address was in a remote location on Ganghwa Island, which seemed unsuitable for any entertainment-related operations. Despite the registration of multiple luxury vehicles under the company and various processed expenses, authorities found no evidence that the business provided any genuine services distinct from those offered by Fantagio.

As a result of these findings, both Cha and his mother have been summoned for questioning. The NTS concluded that the financial advantages gained through this arrangement ultimately benefited Cha directly.

Impact on Fantiago and Future Steps

The ramifications of the investigation also extend to Fantiago, which was found to have processed false tax invoices related to the transactions involving Cha’s mother’s company. As a consequence, Fantagio has been charged an additional 8.2 billion won in taxes by the Seoul Regional Tax Office as of August 2025.

In response to the ongoing investigation, Fantagio issued a statement on January 22, 2025, indicating that the matter has not yet reached a final determination. The agency expressed its commitment to explaining its position through legal channels regarding the interpretation and application of tax laws. They emphasized that Cha and his representatives would cooperate fully with the investigation, affirming Cha’s intention to fulfill his tax obligations as a responsible citizen.

Currently, Cha Eun-woo is serving his military obligations and is expected to be discharged in January 2027. The outcome of this investigation could have significant implications not only for his career but also for the broader entertainment industry in South Korea.