Advertisers Replace Cha Eun-woo with Kim Soo-hyun in New Campaigns
The South Korean advertising landscape is undergoing a significant shift following serious allegations against actor and singer Cha Eun-woo. Recently, Cha has been embroiled in a tax evasion investigation, prompting brands to reconsider their associations with him.
Cha Eun-woo’s Tax Evasion Controversy
On January 23, Shinhan Bank, which had recently chosen Cha as its advertising model, took immediate action. The bank made all promotional materials featuring Cha private across its social media platforms, including YouTube. This decision was in direct response to news regarding an alleged tax evasion totaling about 20 billion won, equivalent to approximately $15 million.
Impact on Advertisements
The fallout from these allegations isn’t limited to Shinhan Bank. On January 22, skincare brand Abib also pulled Cha’s promotional content from its official YouTube channel. This trend signals a growing hesitance within the advertising sector regarding partnerships with celebrities under scrutiny.
Details on Tax Reassessment
| Date of Tax Notification | Tax Amount Under Review | Significance |
|---|---|---|
| Recently received | Approximately 20 billion won ($15 million) | Largest tax claim involving a Korean celebrity |
Cha Eun-woo’s agency, Fantagio, has addressed these allegations, emphasizing that the inquiry centers on whether a corporation established by Cha’s mother qualifies as a taxable entity. They reiterated that the issue remains unresolved.
Legal Position and Future Implications
Fantagio is poised to clarify its legal stance concerning the tax laws relevant to this case. The agency’s commitment to transparency highlights the seriousness of the situation, particularly as it gains extensive media attention. The repercussions of Cha’s tax evasion allegations extend beyond personal liability, impacting the brands that have aligned with him.
As numerous celebrities face varying allegations, the advertising strategies of industry players are in a state of flux. The future of partnerships in South Korea’s advertising industry may depend on the outcomes of these high-profile cases.
