Cha Eun Woo, member of K-pop group ASTRO and popular actor, is currently under scrutiny after reports emerged that he received a tax penalty exceeding ₩20 billion (approximately $15 million) from Korea’s National Tax Service. In a matter of just six hours, the first signs of fallout appeared, with a skincare brand pulling promotional content featuring the star signaling the potential seriousness of the issue.
On January 22, Korean media reported that Cha had been subjected to an intensive tax investigation by the Seoul Regional Tax Office’s Investigation Bureau 4 in 2025. This particular department is infamous for handling high-profile tax evasion cases involving conglomerates, celebrities, and public figures and is often dubbed the “grim reaper of corporate tax probes.”
At the center of the allegations is Cha’s income structure. His mother reportedly established a separate company (referred to as “Company A”), which entered into a service contract with Fantagio, Cha’s official agency, to support his entertainment activities. Income generated was then divided between Fantagio, Company A, and Cha himself. However, the Tax Office concluded that Company A was a paper company, not providing real services. By channeling income through the company, they allegedly lowered tax liabilities by applying corporate tax rates (about 25%) instead of personal income tax rates (up to 45%).
Cha’s team has denied wrongdoing, stating: “The central issue is whether the company established by Cha Eun Woo’s mother qualifies as a taxable entity. The matter has not yet been finalized, and we plan to clarify the legal and procedural details through the appropriate channels.” They also emphasized that both Cha and his tax representatives are fully cooperating to resolve the issue promptly.
Despite this explanation, advertisers appear to be reacting swiftly. OSEN confirmed that skincare brand Abib has hidden Cha Eun Woo’s promotional videos from its YouTube channel following the news. While his profile remains on their official website, the timing of the video removal closely following the tax controversy strongly suggests a cautious response from the brand.
Cha Eun Woo is currently serving in the military, having enlisted in July 2025. He is set to complete his service in January 2027. This year, fans were anticipating his return to the screen in Netflix’s upcoming series The WONDERfools. However, with tax allegations now in the spotlight, it remains to be seen how both the public and his commercial partners will respond as the situation unfolds.
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Sources: Nate
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