Cha Eun-woo Faces Tax Allegations Linked to His Mother’s One-Person Company

Cha Eun-woo Faces Tax Allegations Over His Mother's One-Person Company

According to an exclusive by South Korean media Edaily, actor and singer Cha Eun-woo is under investigation by the National Tax Service over alleged tax evasion involving more than 200 billion won (approximately 136 million USD). The investigation was conducted before the actor’s military enlistment in July 2025.

Tax authorities reportedly believe Cha Eun-woo used a one-person company established by his mother to reduce his personal income tax. Although he was already signed to entertainment agency Fantagio, an additional company was inserted between the actor and the agency to split his earnings. The National Tax Service determined that this company did not provide real services and classified it as a paper company, allegedly created to apply lower corporate tax rates instead of higher personal income tax rates.

As a result, the investigation expanded to include Fantagio, which was later ordered to pay additional taxes for issuing what authorities described as false tax invoices. Officials believe that the profits ultimately flowed back to Cha Eun-woo.

Cha Eun-woo’s side said the allegations are unfair. After receiving the tax notice, they filed a request for a review of improper taxation. His representatives argued that because Fantagio’s management changed multiple times, Cha Eun-woo’s mother established the company out of concern and a desire to protect her son’s entertainment activities by directly managing his agency work. They emphasized that Company A is not a paper company, but legally established to protect and manage his career. The 28-year-old actor may pursue further legal action if the decision is upheld.

Photo: eunwo.o_c

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