Cha Eun-woo, a member of K-pop group ASTRO currently fulfilling his mandatory military service, is under scrutiny for alleged tax evasion amounting to more than 20 billion won (approximately 15 million USD).

According to a report by E-Daily on January 22, Cha was investigated by the Seoul Regional National Tax Service last year on suspicion of evading income tax. Authorities reportedly notified Cha that he must pay over 20 billion won in back taxes related to suspected tax evasion.

Cha Eun-woo is currently managed by entertainment agency Fantagio. E-Daily’s investigation revealed that Fantagio had signed a “celebrity activity support service contract” with a corporate entity established by Cha’s mother. Under this arrangement, Cha’s earnings from entertainment activities were reportedly divided among Fantagio, his mother’s company, and Cha himself.

Tax officials judged the corporation set up by Cha’s mother to be a so-called "paper company." A paper company refers to an entity that exists on paper but conducts minimal or no substantive business—commonly used for tax evasion, offshore holdings, money laundering, or concealing assets. Despite holding official records such as registrations, accounts, and contracts, such shell firms often lack actual business operations.

As a result, the National Tax Service imposed a penalty of 8.2 billion won on Fantagio. The agency filed a tax review appeal, but the penalty was upheld. Cha Eun-woo himself was separately notified to pay over 20 billion won in additional taxes, and he, too, has appealed to contest the tax decision. Should the appeal fail, Cha would be liable for the entire amount.

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=MHN DB