According to reports confirmed on January 23, Cha’s Gallery, a company established by Cha Eunwoo’s mother where Cha is listed as an internal director underwent a major structural change in September 2024. The company reportedly shifted from a joint-stock corporation to a limited liability company (LLC), while also changing its corporate name and organizational status.
Previously registered in Gimpo as a single-person agency, the company allegedly relocated its address to Ganghwa Island around the same time. The new registered address is said to be the same location as a restaurant operated by Cha Eunwoo’s parents, raising questions about whether the entity functions as a physical business or exists primarily on paper.
Experts cited in the report suggest the restructuring may have been intended to avoid mandatory external audits, which apply to joint-stock companies above a certain size but do not apply to LLCs. In addition, LLCs are not required to publicly disclose financial statements, making external oversight more limited.
The relocation to Ganghwa Island has also drawn attention. The area falls under a special regional classification that allows corporations to avoid higher acquisition and registration taxes on real estate, a benefit not available in many metropolitan zones. Investigators reportedly noted that the company later added “real estate leasing” to its list of business purposes, further fueling speculation that tax advantages were being sought.
Based on these factors, the National Tax Service (NTS) concluded that income may have been routed through a family-owned corporate entity subject to lower corporate tax rates, rather than being taxed at the top personal income tax rate of 45 percent. As a result, the NTS reportedly issued an additional tax assessment totaling approximately ₩20 billion, the largest ever imposed on a Korean celebrity and among the highest globally.
Comparative figures place the case alongside international high-profile tax controversies involving figures such as Fan Bingbing, Zheng Shuang, Cristiano Ronaldo, Willie Nelson, and Shakira, ranking it among the top six largest celebrity tax assessments worldwide by reported amount.
In response, Cha Eunwoo’s agency Fantagio stated on January 22 that the key issue lies in whether the company established by his mother qualifies as a legitimate taxable entity. The agency emphasized that the matter has not been finalized and said it plans to actively present its position through lawful procedures regarding the interpretation and application of tax law.
Cha Eunwoo, who enlisted in the military in July last year and is currently serving in the Army band, is also preparing for the release of his upcoming Netflix series The WONDERfools.
Legal expert Noh Jong-eon of Law Firm Jonjae commented that registry documents confirm the company’s transition to an an LLC and name change in September 2024. He noted that LLCs are excluded from mandatory external audit disclosures, suggesting the restructuring may have been designed to avoid public reporting obligations. He added that such methods are not uncommon in cases where entities seek to reduce scrutiny during sensitive financial periods.
As the tax review process continues, the case has ignited broader debate over celebrity accountability, corporate transparency, and the fine line between tax planning and tax avoidance.
Sources: Daum
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