Going Broke Without Cha Eunwoo? Fantagio Said To Be In Financial Crisis
On July 28, 2025 (KST), ASTRO‘s Cha Eunwoo enlisted in the military—and according to Korean news reports, his fans aren’t the only ones struggling in his absence. Chosun Biz claimed that Fantagio, Cha Eunwoo’s management agency, is now “staggering under financial strain.”
According to the reports, Fantagio received an additional tax bill of about ₩8.20 billion KRW (about $5.90 million USD) from the Seoul Regional Tax Office, which represents a whopping 14.12% of Fantagio’s equity capital. The assessment is said to cover corporate taxes and related obligations from 2020 to 2024, with a deadline of October 31.
Then, in November, an even bigger issue awaits Fantagio. It is due to pay back ₩13.0 billion KRW (about $9.35 million USD) in bonds, as its 7th round CBs mature. Chosun Biz pointed out that, because Fantagio’s stock price has dropped so much, investors are unlikely to convert those bonds into shares—which means Fantagio will have to pay the money back in cash—plus a high 7% interest rate.
In other words, Fantagio reported having only ₩11.0 billion KRW (about $7.91 million USD) in cash and cash equivalents as of March. But in October and November alone, it needs ₩21.0 billion KRW (about $15.1 million USD).
So, is Fantagio going broke without Cha Eunwoo? Well, kind of.
Industry insiders point out that the agency became overly reliant on a limited pool of intellectual property (IP) and barely sustained its business through cash injections from affiliates.
According to Fantagio’s securities filings, in Q3 2023 (July–September), a single artist accounted for more than half of total sales—a figure widely believed to be Cha Eunwoo. With his military enlistment last month, the agency’s primary “cash cow” is now gone, making revenue declines all but inevitable.
Additionally, Fantagio failed its attempt to materialize the K-Drama business. Fantagio had pitched its K-Drama business as their “post-Cha Eunwoo” growth strategy, but it only highlighted the ongoing struggles. Previously, the agency tapped shareholders through two rights offerings: ₩25.0 billion KRW (about $18.0 million USD) in 2021 and ₩23.0 billion KRW (about $16.5 million USD) last year. The funds were earmarked for acquiring a K-Drama production company and financing K-Drama/album production, but nothing came from those funds. When the production of its 24-episode historical K-Drama, Royal Physician Dae Jang Geum, was delayed, it further widened the revenue gap.
In regards to the K-Drama business going south, Fantagio’s spokesperson admitted, “We raised capital for a K-Drama production, but the historical drama market has slumped. Rather than push forward with the original schedule, we are waiting for conditions to improve.”
Chosun Biz noted that Fantagio released its preliminary earnings on August 22: revenue was ₩38.1 billion KRW (about $27.4 million USD), down 42% from the previous fiscal year, with an operating loss of ₩2.80 billion KRW (about $2.01 million USD) and a net loss of about ₩900 million KRW (about $647,000 USD). This marked the company’s third straight year of operating losses and fourth straight year of net losses.
In response to Chosun Biz, though, the Cha Eunwoo-less agency swore “this is not a liquidity crisis.”
We are reviewing the tax assessment with legal counsel and considering possible appeals. Discussions are also ongoing about the additional tax burden and CB repayment. We have short-term financial assets that can be liquidated, so this is not a liquidity crisis.
— Fantagio
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