According to a January 22 report by Edaily, Cha Eunwoo underwent a tax audit conducted by the Seoul Regional Tax Office’s Investigation Division 4 in the spring of last year. The National Tax Service concluded that a company established by Cha Eunwoo’s mother functioned as a paper company that provided no substantive services. Authorities believe this structure allowed income to be taxed at a corporate rate more than 20 percentage points lower than the top personal income tax rate of 45 percent thereby reducing tax liability. As a result, the NTS reportedly issued an additional tax assessment exceeding ₩20 billion.
Cha Eunwoo enlisted in the military on July 28, 2025, after the tax audit had already taken place. While actively serving, he appeared as the master of ceremonies at the official APEC leaders’ welcome banquet held in Gyeongju on October 31, 2025. The high-profile event was hosted by President Lee Jae Myung and his spouse and attended by approximately 400 guests, including leaders and spouses from 21 APEC member economies, representatives of international organizations, global CEOs, and prominent domestic and international figures.
The APEC preparation committee reportedly requested cooperation from the Ministry of National Defense to allow Cha Eunwoo’s participation. At the time, he was serving in the Military Support Group’s band unit, which enabled him to take on the MC role. A presidential office official explained that the decision was made in consideration of global interest in K‑pop and Korean culture, viewing Cha Eunwoo’s involvement as a form of cultural promotion.
The revelation has triggered polarized reactions online. Some netizens criticized Cha Eunwoo for participating in a state-level event despite being aware of potential tax issues, calling the decision inappropriate. Others questioned whether a soldier on active duty realistically has the authority to refuse an official assignment approved by the Ministry of Defense, arguing that the situation may not have involved personal choice.
Meanwhile, Cha Eunwoo’s side stated that the case centers on whether his mother’s company qualifies as a legitimate taxable entity, emphasizing that the matter has not yet been finalized or formally confirmed. Cha Eunwoo’s side added that they plan to actively present their case through proper legal procedures regarding the interpretation and application of tax law. Cha Eunwoo is currently awaiting the results of a pre-assessment review by tax authorities.
As public scrutiny continues, the controversy highlights the complex intersection of celebrity responsibility, military duty, and unresolved legal disputes.
Sources: Daum
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