South Korean actor and Astro member Cha Eun-woo is under investigation by the National Tax Service (NTS) over alleged tax evasion involving about 20 billion won (US$13.6 million).
According to a report by Korean media outlet Edaily on Thursday (Jan 22), Cha was subjected to an intensive tax audit last year by the Seoul Regional Tax Office’s Investigation Division 4, a unit that typically handles major tax evasion cases. The audit was carried out in July 2025, before Cha enlisted for mandatory military service.
Following the investigation, the NTS reportedly informed Cha that he owed additional taxes, including income tax, over allegations that he had underpaid his taxes.
The probe centres on a “one-person agency” established by Cha’s mother. While Cha is officially managed by entertainment agency Fantagio, investigators found that a separate company set up by his mother had been placed between Cha and Fantagio through a service contract. Under this arrangement, Cha’s earnings were distributed among Fantagio, the one-person company and Cha himself.
Tax authorities concluded that the company did not provide any real services and functioned as a “paper company” created to reduce income tax liabilities. Corporate tax rates are significantly lower than the personal income tax rate, which can reach up to 45 per cent.
Authorities noted that the company’s registered address was located in a remote area of Ganghwa Island, which appeared unsuitable for entertainment-related operations. Despite registering multiple imported vehicles and processing various expenses, investigators found no evidence that the company provided services distinct from those offered by Fantagio.
Both Cha and his mother were summoned for questioning. The NTS reportedly determined that the financial benefits gained through the company ultimately went to Cha, with unpaid income tax amounting to 20 billion won.
The investigation also affected Fantagio, which was found to have processed allegedly false tax invoices issued by the company established by Cha’s mother. As a result, the agency was reportedly ordered to pay an additional 8.2 billion won in taxes in August 2025.
In a statement released on Jan 22, Fantagio said the matter has not been finalised and that the company plans to clarify its position through lawful procedures, citing issues related to legal interpretation and application.
Fantagio added that Cha and his representatives will cooperate fully with the investigation, and that the actor will continue to fulfil his tax and legal obligations as a citizen.
Cha is currently serving his military service and is scheduled to be discharged in January 2027.
