South Korean Star Cha Eun-woo Investigated for $13.6 Million Tax Evasion

South Korean actor and Astro member Cha Eun-woo is under investigation for alleged tax evasion amounting to 20 billion won (approximately US$13.6 million). The National Tax Service (NTS) of South Korea initiated this inquiry, which has significant implications for both Cha and his management agency, Fantiago.

The investigation began in July 2025 when the Seoul Regional Tax Office’s Investigation Division 4, known for handling serious tax evasion cases, conducted an audit related to Cha’s finances. This audit occurred just before Cha enlisted in the military, with his service expected to conclude in January 2027. Following the audit, the NTS informed Cha that additional taxes were owed, including income tax, linked to the alleged evasion.

Central to the allegations is a “one-person agency” established by Cha’s mother. While Cha is officially signed with Fantiago, investigators uncovered that this separate entity was positioned between him and the agency through a service contract. This arrangement allowed Cha’s earnings to be split among Fantiago, his mother’s company, and Cha himself.

Tax authorities assert that the company, which was registered in a remote area of Ganghwa Island, functioned primarily as a “paper company” without providing legitimate services. The corporate tax rate in South Korea is significantly lower than the personal income tax rate of 45 percent, which raises concerns about the financial practices involved. Authorities noted that the company had multiple luxury vehicles registered under its name, but lacked distinct services that would justify its existence apart from Fantiago.

As a result of these findings, both Cha Eun-woo and his mother have been summoned for questioning. Investigators have concluded that the financial benefits from the company ultimately returned to Cha. The total amount of unpaid income tax attributed to him has been confirmed at 20 billion won.

The situation has also affected Fantiago, which faces its own repercussions. In August 2025, the tax office charged the agency 8.2 billion won in additional taxes after determining that it had processed false tax invoices from the company founded by Cha’s mother.

In response to the claims, Fantiago released a statement on January 22, 2025, asserting that the matter is not yet resolved. The agency plans to clarify its position through legal channels concerning the interpretation and application of the law. Fantiago emphasized that Cha and his representatives would fully cooperate with the ongoing investigations and that the actor intends to meet his tax obligations as a responsible citizen.

As the investigation unfolds, the implications for Cha Eun-woo, both professionally and personally, remain to be seen. His current military service adds another layer of complexity to a situation that is drawing significant public attention in South Korea and beyond.