As allegations involving ₩20 billion in tax evasion continue to swirl around ASTRO member and actor Cha Eun Woo, an attorney has raised the possibility that both Cha and his mother could face prison sentences if criminal intent is established.
On the January 30 broadcast of YTN Radio’s Case X File, attorney Kim Jung Gi of Law & Liberty Law Firm shared his legal analysis of the case. He described the alleged tax penalty as unprecedented, stating, “₩20 billion is the largest tax reassessment ever imposed on an individual entertainer in Korea and is extraordinary even by global standards. Most celebrity tax cases involve amounts in the billions of won at most.”
Kim added that experts estimate Cha Eun Woo’s total income would have had to exceed ₩100 billion for the tax reassessment to reach such a level, comparing the scale to international cases involving stars like Fan Bingbing and Cristiano Ronaldo.
According to Kim, the National Tax Service suspects Cha Eun Woo attempted to avoid the top personal income tax rate—up to 45%—by channeling earnings through a corporation established by his mother, which would be taxed at a much lower corporate rate of around 20%. “In simple terms, if you earn ₩1 billion as an individual, nearly half goes to taxes. But if you route it through a corporation, that tax burden can drop dramatically,” he explained. Authorities reportedly believe the company did not perform genuine management functions and was used primarily as a vehicle for tax reduction.
Kim also emphasized the seriousness of the investigation being handled by the Seoul Regional Tax Office’s Investigation Bureau No. 4. Often referred to as the “Grim Reaper of the business world,” this unit is known for targeting deliberate tax evasion and slush fund cases. “The fact that Bureau No. 4 is involved signals that authorities see this not as a simple accounting mistake, but as a potentially serious criminal offense,” Kim said.
When asked whether prison time is possible if intent is proven, Kim responded that under Korea’s Act on the Aggravated Punishment of Specific Crimes, tax evasion exceeding ₩1 billion can result in life imprisonment or a minimum of five years in prison. He added that not only the mother, as the head of the corporation, but also Cha Eun Woo himself could be investigated and punished as a co-conspirator, depending on who planned and approved the alleged scheme.
Kim further noted that Cha’s current military status would not exempt him from investigation. Authorities could conduct questioning at his military unit or during leave, and coordination with military prosecutors is possible. Investigations may also continue after his discharge if necessary.
Cha Eun Woo has been embroiled in the controversy since January 22, after reports surfaced that the National Tax Service conducted an intensive audit into alleged tax evasion through a one-person agency established by his mother and issued a tax reassessment exceeding ₩20 billion.
Sources: Nate
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