Cha Eun Woo Responds to Tax Evasion Allegations with Personal Statement

South Korean star Cha Eun-woo recently addressed serious allegations regarding tax evasion, as he reportedly owes over 20 billion won (approximately $14 million) in additional income taxes. The situation came to light when the National Tax Service (NTS) informed him of the potential tax liability after an audit conducted in the first half of 2025. Cha, who is currently serving in mandatory military service, posted an apology on social media on January 26, 2026.

Cha Eun-woo’s Statement on Tax Evasion Allegations

In his statement, Cha Eun-woo expressed his commitment to accepting the judgment of tax authorities, stating, “I will humbly accept the final judgment made by the relevant authorities and take full responsibility in accordance with the outcome.” He acknowledged the concern caused by the allegations and promised to comply with all tax-related procedures in the future.

Background of the Allegations

The allegations stem from an investigation into a company registered under Cha’s mother, Choi. Initially established in October 2022, this company has drawn scrutiny for operating allegedly as a “paper company.” According to the NTS, it lacked substantial business activities and existed primarily to facilitate Cha’s income through advantageous corporate tax rates.

Significant Tax Implications

• The estimated tax liability of 20 billion won marks one of the largest assessments against an individual entertainer in South Korea.
• Cha’s income reportedly flowed through his agency Fantagio, his personal accounts, and his mother’s company, allegedly creating substantial tax savings.

South Korea’s personal income tax can be as high as 45%, while corporate tax rates are notably lower. Investigators found discrepancies between the company’s stated activities—such as album production and advertising—and its actual operations.

Commercial Impact on Cha Eun-woo

The allegations have already begun to affect Cha Eun-woo’s commercial relationships. Major brands, including Shinhan Bank and cosmetics firm Abib, have reportedly pulled or reduced advertising campaigns featuring the actor. Industry sources indicate that there is growing hesitation within the advertising sector to align with him following these claims.

The Ongoing Investigation

The investigation into Cha’s finances is part of a broader audit of his agency, Fantagio. In August 2025, the agency was ordered to pay an additional 8.2 billion won in taxes. The findings emerged as investigators looked into financial activities associated with Cha’s mother’s company.

Cha Eun-woo’s Commitment Moving Forward

Cha’s public apology marks his first direct response to the allegations since they emerged. Despite being in military service, he has expressed a strong desire to cooperate fully with the investigation process. He emphasized accountability and a commitment to adhering to all tax regulations in the future.

The ongoing scrutiny reflects the increasing focus on how entertainment income and corporate structures are evaluated by tax authorities in South Korea. The outcome of this investigation could set a precedent for future cases involving high-profile figures in the entertainment industry.