This article is part of our coverage of Cha Eunwoo's Tax Evasion Scandal. You can read more and view the entire timeline here.
YouTuber and reporter Lee Jin Ho claimed that “the law firm Sejong, representing Cha Eunwoo, was appointed not recently but about a year ago.”
On the 27th, Lee Jin Ho released a video focusing on the controversy surrounding ASTRO Cha Eunwoo’s alleged tax arrears amounting to about ₩20.0 billion KRW (about $14.0 million USD).
In the video, Lee Jin Ho first argued, “After checking with tax and accounting experts, there was a gap with public perception.”
The key point of the video was the existence of the family corporation and whether it actually performed management duties. Lee Jin Ho pointed out the issue raised by the National Tax Service, “Did the corporation run by his mother genuinely carry out management for Cha Eunwoo?” He explained that there were claims it was difficult to view the corporation—which has a registered office in Ganghwado (including an eel restaurant)—as having genuinely managed Cha Eunwoo.
Lee Jin Ho also said, “Cha Eunwoo’s side has appointed law firm Sejong to actively respond,” adding, “Sejong was appointed not recently but about a year ago, apparently preparing for this situation.” However, he refrained from providing detailed explanations, saying, “It is difficult to disclose specific details.”
During the process, Lee Jin Ho read Cha Eunwoo’s official statement released on the 26th and highlighted its meaning. The apology letter included phrases such as, “I am reflecting on and taking responsibility for my tax obligations,” “Although currently serving in the military, it was not an intentional choice to avoid controversy,” “I will sincerely comply with tax-related procedures,” and “I will humbly accept and take responsibility for the final judgment of the relevant authorities.”
Lee Jin Ho further fueled the controversy by mentioning financial statement figures in the video. Citing the family corporation’s 2023 figures, he mentioned “sales of about ₩16.5 billion KRW (about $11.5 million USD) and operating profit of ₩14.2 billion KRW (about $9.92 million USD),” claiming the operating profit margin to be in the 80% range. He also referred to labor costs (increased from the previous year) and selling and administrative expenses (around ₩2.30 billion KRW (about $1.61 million USD)), stating, “Whether these costs were actually spent on managing Cha Eunwoo will be a key issue.”
However, Lee Jin Ho also conveyed counterarguments from tax and accounting professionals, saying, “It is difficult to conclude tax evasion solely based on a high operating profit margin,” “Paying high labor costs is also at the company’s discretion. Even a small office can manage one celebrity.” He added, “Since the case was handled by the Investigation Division 4 and reached the stage of a tax assessment notice, it seems difficult to overturn the decision.”
Ultimately, Lee Jin Ho concluded by emphasizing, “Rather than the figures themselves, the key point is whether actual management work was performed,” wrapping up the video.
