ASTRO’s Cha Eunwoo Accused Of Tax Evasion Totaling Up To $13.7 Million USD

Cha Eunwoo and his mother are being investigated.

ASTRO‘s Cha Eunwoo is currently under investigation by the National Tax Service of tax evasion. He was notified by the National Tax Service that he owes over ₩20.0 billion KRW (about $13.7 million USD) in additional taxes, including income tax, on charges of tax evasion. This is considered one of the largest additional tax assessments ever imposed on a celebrity.

The assessment is the result of a tax audit conducted before Cha Eunwoo enlisted in the military in July last year. Cha Eunwoo’s side has formally objected to the decision and is currently awaiting the outcome of a pre-assessment review requested to challenge the National Tax Service’s ruling.

The key point of the suspicions lie in his one-person agency. The officials viewed it as a way to reduce income taxes. The allegations against Cha Eunwoo follow a pattern similar to recent tax evasion cases involving celebrities using so-called “one-person agencies.” In these cases, despite already being signed to an official entertainment agency, the celebrity or their family establishes a separate company that signs a service contract with the main agency, allowing income to be redistributed in a way that lowers tax liability.

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According to an exclusive report by Edaily on January 22, 2026, Cha Eunwoo was subjected to an intensive investigation last spring by the Seoul Regional Tax Office’s Investigation Division 4, which typically handles major tax evasion cases.

In Cha Eunwoo’s case, a company that was established by his mother was placed between him and his management agency Fantagio. Fantagio signed a service contract with the aforementioned company for support related to his entertainment activities. From that point on, Cha Eunwoo’s earnings were divided among Fantagio, his one-person agency, and Cha Eunwoo as an individual himself.

However, the National Tax Service determined that this company as setup by Cha Eunwoo’s mother was a “paper company” that did not provide actual services. Investigators concluded that Cha and his mother created the entity to reduce income tax, normally as high as 45%, by distributing income through a corporation subject to a corporate tax rate more than 20 percentage points lower.

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“The company’s registered address was located in a remote area of Ganghwa Island, which didn’t appear suitable for entertainment-related business, and it was difficult to consider it an actual office. While multiple imported cars were registered under the company and various expenses were processed, there was reportedly no differentiated service provided compared to Fantagio.”

Because the tax authorities did not recognize this company as a legitimate operating entity, repercussions extended to Fantagio as well. Fantagio was assessed ₩8.20 billion KRW (about $5.60 million USD) in additional taxes by the Seoul Regional Tax Office in August last year.

The National Tax Service concluded that Fantagio had processed false tax invoices issued by Cha Eunwoo’s mother’s company and imposed additional taxes including value-added tax. Fantagio filed its own pre-assessment objection, but the decision was upheld.

After summoning both Cha Eunwoo and his mother for questioning, tax authorities concluded that the financial benefits accrued through their company ultimately went back to Cha Eunwoo, and that he had therefore failed to pay more than ₩20.0 billion KRW (about $13.7 million USD) in income tax. At Cha Eunwoo’s request, the National Tax Service reportedly waited until his military enlistment process was completed before issuing the official audit results notice.

Cha Eunwoo’s representatives insist the ruling is unjust. They have formally requested a review of the tax authority’s decision through the pre-assessment process.

“Due to frequent changes in Fantagio’s leadership, Cha Eunwoo’s mother felt the need to protect her son’s entertainment activities and therefore established a company to directly operate a management business. The company is not a paper company, but a legally registered cultural and entertainment management agency.”

If the pre-assessment review is accepted, Cha will not be required to pay the assessed taxes. If rejected, he must pay according to the notice, but may continue disputing the ruling through one of several legal channels, including an appeal to the National Tax Service, the Tax Tribunal, or the Board of Audit and Inspection. Cha’s side is also reportedly considering withdrawing the current request and proceeding directly to the Tax Tribunal.

Source: Edaily

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