Tax evasion allegations levelled against South Korean singer-actor Cha Eun-woo in connection with a company founded by his mother has prompted bigshot advertisers to remove commercials he featured in, as per Korean media reports.
According to The Korea Times, Cha, a member of boy group Astro and one of South Korea’s most sought-after endorsers, was recently notified by the National Tax Service Seoul Regional Office that he could owe more than 20 billion won (USD 13.6 million) in additional income tax following an intensive audit conducted in the first half of last year.
The indebted amount is potentially the largest tax bill ever imposed on a Korean celebrity, as per reports.
The Korea Times report further revealed that the company, which was established in October 2022, is registered as a management firm by Cha’s mother. Back in 2022, the listed address was Bureun-myeon, Ganghwa-gun, Incheon — which is at the same location as an eel restaurant run by Cha’s parents. The company later shifted its office to Nonhyeon-dong, Seoul on December 23 last year. A month earlier, the family restaurant relocated to Cheongdam-dong, Seoul.
The National Tax Service alleged that the company operated as a shell company that offered no services to Cha and was used to distribute parts of his income with a corporate tax rate, which is lower than the top personal income tax rate of 45 per cent, The Korea Times reported.
Both Cha and his mother were summoned by the tax authorities for questioning. When Cha enlisted early in the military in July 2025, the findings were formally delivered.
The investigation deepened after a probe into Cha’s agency Fantagio, which was ordered to pay 8.2 billion won with additional taxes in August last year. Tax authorities reportedly unraveled the alleged scheme involving the company run by Cha’s mother while investigating Fantagio’s finances.
Cha’s team has filed an appeal to contest the allegations, as per the report.
“This matter has not been finalised or officially confirmed,” Fantagio said in a statement. “We will actively explain our position through lawful procedures and cooperate fully so the process can be concluded promptly. Cha Eun-woo will continue to faithfully fulfill his tax and legal obligations as a citizen.”
Advertising companies have been removing Cha’s promotional content from their social media accounts. Shinhan Bank has turned Cha’s commercials private on YouTube and other social media platforms. Skincare brand Abib has also pulled back commercials featuring Cha.
On the work front, the 28-year-old South Korean star is set to appear in the Netflix series The Wonderfools.