Singer-actor Cha Eunwoo has officially begun his legal counterattack amid allegations of tax evasion totaling ₩20 billion by hiring one of South Korea’s top law firms, Shin & Kim (Sejong). This sets the stage for a high-profile legal showdown against the National Tax Service (NTS) Investigation Division 4, often dubbed the “grim reaper” of the business world.
Shin & Kim: The Legal Powerhouse Enters the Ring
According to sources in both legal and entertainment industries on January 26, Cha Eunwoo has retained Law Firm Shin & Kim, initiating legal proceedings to challenge the NTS’s tax ruling. While his agency Fantagio declined to confirm, insiders believe that strategic preparations are already underway.
Shin & Kim reported a record-high revenue of ₩436.3 billion in 2025, recently overtaking Lee & Ko to claim the #3 spot among Korean law firms. Known for its growing influence in the entertainment sector most notably for advising on NewJeans’ contract dispute Shin & Kim’s involvement signals a serious fightback.
Facing the “Grim Reaper”
Cha Eunwoo’s opponent is none other than Investigation Division 4, the elite arm of the NTS that handles Korea’s largest and most complex tax evasion cases. Often compared to a central investigation bureau, this division is notorious for pursuing high-net-worth individuals and corporate executives, frequently referring cases to prosecutors for criminal charges.
At the heart of the controversy is Cha Eunwoo’s income structure. The NTS flagged a service agreement between Fantagio and a company (referred to as “Company A”), allegedly founded by Cha Eunwoo’s mother. The tax office determined that Company A functioned as a shell company with no real business activity, accusing the parties of diverting personal income subject to a maximum 45% tax rate into a corporate structure to unfairly benefit from the lower corporate tax rate.
Substance Over Form: Proving Intent Will Be Key
Legal experts say the case hinges on whether Company A actually provided real services such as schedule management and contract negotiation. Attorney Lee Ji-hoon noted that unless Cha Eunwoo’s side can prove tangible contributions by the corporation, the NTS’s claim of improper tax treatment will hold weight.
Attorney-accountant Kim Myung-gyu of MK Partners emphasized the seriousness of the case, pointing to the strategic shift from a standard corporation to a limited liability company, the address change to a restaurant in Ganghwa (to avoid acquisition tax surcharges), and lack of financial transparency. “These are not accidental errors, but appear to be the result of deliberate tax planning, likely with expert involvement,” he warned.
As public scrutiny intensifies, Fantagio issued a statement stressing that the core issue is whether the company in question qualifies as a taxable entity. The agency reiterated that the final outcome has yet to be determined and that they intend to fully cooperate through lawful procedures.
Sources: Daum
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