Kim Soo-hyun Switch Prompts Advertisers to Pull Cha Eun-woo Ads

The advertising industry in South Korea is quickly distancing itself from actor and singer Cha Eun-woo amid serious allegations of tax evasion. This marks a significant shift, especially as Cha was recently hired to replace another star, Kim Soo-hyun, who also faced controversy.

Consequences of the Tax Evasion Allegations

On January 23, Shinhan Bank, which recently appointed Cha as its advertising model, made a swift decision. The bank set Cha’s promotional videos and images to private across its social media platforms, including YouTube.

These actions came in response to reports revealing that Cha is under investigation for an alleged tax evasion totaling approximately 20 billion won, which equals around $15 million. This situation has raised alarms within the advertising sector.

Impact on Advertisements

The repercussions extend beyond Shinhan Bank. On January 22, the skincare brand Abib also removed Cha’s promotional content from its official YouTube channel. This indicates a broader retreat within the advertising industry, highlighting the intense scrutiny surrounding the celebrity’s financial dealings.

Tax Reassessment Details

• Date of Tax Notification: Recently received notification from South Korea’s National Tax Service
• Tax Amount Under Review: Approximately 20 billion won ($15 million)
• Significance: The largest tax claim reported involving a Korean celebrity

Cha Eun-woo’s agency, Fantagio, addressed the situation, clarifying the issue revolves around whether a corporation set up by Cha’s mother qualifies as a taxable entity. They emphasized that the matter is still under review and has not been formally established.

Legal Stance and Future Implications

Fantagio plans to actively explain its legal position regarding the interpretation of tax laws. This commitment indicates they seek to clarify the circumstances surrounding the case, as it gains widespread media coverage.

The fallout from Cha’s tax evasion allegations poses significant challenges not just for him but also for the brands associated with him. With multiple celebrities now caught in separate scandals, the advertising strategies of industry players remain uncertain.