K-Drama Star Cha Eun-woo Faces Ad Pulls Amid South Korean Tax Probe
Recent allegations surrounding K-drama star Cha Eun-woo have led several South Korean brands to distance themselves from him. The actor is under scrutiny for allegedly evading approximately 20 billion won (around $13 million) in taxes through a shell company reportedly registered under his mother’s name.
Brand Reactions
As a result of the tax probe, major brands have taken immediate action. Shinhan Bank and skincare brand Abib have made Cha’s advertisements private on their social media platforms. Furthermore, wellness company BodyFriend is reportedly contemplating replacing him in their promotional material.
Background of the Allegations
The National Tax Service revealed last year that Cha Eun-woo received a significant additional tax assessment. This followed an investigation that found a company established by his mother operated as a paper firm. According to reports from Edaily, this entity entered into an agreement with Cha’s agency, Fantagio, to oversee his entertainment affairs.
- The shell company facilitated revenue management, which allegedly lowered Cha’s tax obligations by over 20 percentage points.
- Cha’s revenue was distributed among the company, his agency, and himself, adding to the complexity of the tax situation.
Official Response
In light of these allegations, Cha Eun-woo’s team has filed for a pre-assessment review. This formal procedure allows taxpayers to challenge the tax authority’s interpretation before a definitive decision is made.
The unfolding situation has sparked discussion within the entertainment industry, as other celebrities and brands monitor the developments closely. The outcome could have lasting effects on Cha’s career and endorsements.
