On March 8, an episode of the investigative program Straight aired on Munhwa Broadcasting Corporation (MBC), examining how celebrities operate one-person agencies and manage corporate income structures. The broadcast highlighted Cha Eun Woo’s case in particular.
According to the program, the star—who reportedly faced a tax reassessment of approximately 20 billion KRW (around $15 million) from the National Tax Service last year—has been receiving earnings through a corporation in which he holds a 100% ownership stake.
The report revealed that the company’s registered address had previously been linked to an eel restaurant in Ganghwa, Incheon, which was run by Cha Eun Woo’s family.
Local residents told reporters that the building is currently empty after undergoing demolition around six months ago for renovation. The restaurant and surrounding land were part of a broader property purchase made by the company.
Investigative findings from Straight indicate that the corporation acquired about 4,500 pyeong of land in July 2020, including the restaurant building and nearby forested property, for 1.75 billion KRW. Approximately 800 million KRW of the purchase was financed through a corporate loan, according to the broadcast.
The company later expanded its holdings. In February of last year, it reportedly bought an additional 1,230 pyeong of land located directly in front of the restaurant for 1.1 billion KRW.
Altogether, the properties amount to roughly 5,700 pyeong—about the size of three soccer fields.
The investigative program pointed out that while the corporation acquired a large area of land, it remains unclear what specific entertainment management activities the company has carried out.
Straight noted that Cha Eun Woo’s annual income is estimated to reach hundreds of billions of Korean won. Under Korean tax law, earnings processed through a corporation may be taxed differently from personal income, potentially creating tax differences worth tens of billions of won.
The program also explained that operating a one-person agency itself is not illegal. However, if a company exists only on paper and does not conduct actual management activities, authorities may consider it a case of income tax evasion.
In response, Cha Eun Woo’s agency Fantagio stated that the star’s mother has been involved in handling management-related tasks to support his entertainment career.
The agency added that it is currently undergoing official procedures and submitting relevant materials to confirm the legality of the arrangement.
While the issue continues to attract attention following the broadcast, no final legal determination has been announced as of now.
Sources: 네이트 뉴스
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