The actor-idol is currently inactive as he is in the middle of serving in the military.
On Thursday, January 21, news broke that Korean superstar Cha Eunwoo, a member of the boy group ASTRO, is under investigation by the Seoul Regional Tax Office in South Korea.
He is being checked upon for allegedly evading payment of 20 billion won (USD13.6 million) by funneling it to a “paper company” or a shell company co-founded by his mother.
Using that structure, the 28-year-old was said to have paid a lower corporate tax rate instead of paying personal income taxes on the income he is getting through his main agency, Fantagio Entertainment.
Registered as a company engaged in entertainment-related business, this entity codenamed Company A in reports had the authorities raise suspicions on its address, which was reported to be not appropriate for such business type and as not being an actual office.
The tax service also noted that the investigation came before Cha enlisted in the mandatory military service in July 2025.
The National Tax Service (NTS) of South Korea has also summoned Cha Eunwoo and his mother, where they concluded that the income ultimately went to the actor-idol.
In response, his representatives have formally contested the audit, arguing the company is a legitimate and registered entertainment entity.
“Fantagio’s CEO changed several times, and out of a sense of insecurity about her son’s entertainment career, his mother established the company and began operating the management business herself, driven by a desire to protect him.”
It added, “This is not a paper company with no substance, but a formally registered pop culture and arts planning business.”
We would like to share our official statement regarding the article published today concerning the tax audit involving our agency’s artist, Cha Eunwoo.
Meanwhile, in a separate statement, Fantagio has also stood behind the artist and noted, as reported by the entertainment website Soompi, “The key issue in this matter is whether the corporation established by Cha Eun Woo’s mother falls under the category of an entity subject to substantive taxation.“
Furthermore, it clarified, “Nothing has been finally confirmed or officially notified at this time, and we plan to actively clarify the matter in accordance with lawful procedures.”
Fantagio also assured that Eunwoo and his tax representative will cooperate with the authorities, and asserted that he has fulfilled his tax and legal obligations.
“In order for the process to be concluded as swiftly as possible, the artist and his tax representative will cooperate diligently. We assure you that Cha Eun Woo will continue, as a citizen of this country, to faithfully fulfill tax filings and his legal obligations,” it read.
