Investigative Program Conducts Deep Dive Into Cha Eunwoo’s One-Man Agency
On March 8, MBC’s investigative program, Straight, aired a segment examining the practices of celebrities operating one-man corporations and conducted an in-depth analysis of ASTRO Cha Eunwoo’s case.
According to the show, Cha Eunwoo received a ₩20.0 billion KRW (about $13.5 million USD) tax levy from the National Tax Service last year and was confirmed to have been receiving profits through his one-man agency, which he owns a 100% stake in.
The registered address of Cha Eunwoo’s one-person agency is an eel restaurant located on Ganghwa Island, previously run by his family. The building is currently vacant, and a nearby resident testified that it was demolished for remodeling about 6 months ago.
The broadcast analyzed that, if Cha’s annual estimated income of hundreds of billions of won were calculated under the corporate tax structure rather than the income tax, the resulting tax gap could be tens of billions of won. They also reported that while income settlement through a one-person company is legal, operating a paper company without actual agency operations could be considered tax evasion.
According to their investigation, Cha Eunwoo’s one-man agency purchased a 4,500-pyeong (approx. 14,000 square meters) property, including the building and land containing the eel restaurant, and nearby forests, for approx $1.5 million USD.
Last February, the agency also purchased an additional 1,230-pyeong (approx 4,000 square ft) of land in front of the restaurant for ₩1.10 billion KRW (about $742,000 USD). They stated that, despite purchasing a large tract of land, the agency’s specific activities remained unclear.
In response, Fantagio stated that Cha Eunwoo’s mother had been performing management duties to support his entertainment activities. They also stated that they are in the process of obtaining a proper judgment based on evidence.
Meanwhile, amid allegations of tax evasion, the “Cha Eunwoo Prevention Act” is being proposed.
