K-Topic Details
Cha Eun-woo Faces New Accusations of "Hidden Ads" Amid Ongoing 20 Billion Won Tax Evasion Scandal
Singer and actor Cha Eun-woo has found himself at the center of yet another controversy as photos he previously shared on his personal account have resurfaced amid suspicions of large-scale tax evasion involving a corporation under his mother’s name.
On January 23, several online communities saw a post titled “The Place Linked to Cha Eun-woo’s Paper Company,” quickly gaining traction. According to the post, the corporation under scrutiny by the National Tax Service, known as Company A, is registered at the same address as an eel restaurant formerly operated by Cha Eun-woo’s parents in Ganghwa, Incheon.
Company A was established in October 2022, with its official business classification listed as management services. As controversy surrounds the company’s true operations, netizens have also unearthed photos from September 2022 that Cha Eun-woo posted in front of the aforementioned eel restaurant on his personal social media account.
These images reportedly were later used by the restaurant’s own account for promotional purposes. Captions accompanying online posts included, “He enjoyed the eel and even uploaded a post himself. His frequent visits are no secret.” At the time, netizens reacted positively, suggesting he was simply visiting his parents during the Chuseok holiday.
However, public sentiment shifted dramatically after tax evasion allegations emerged. What were once regarded as innocent posts have now sparked criticism, with users commenting, “He never disclosed it was his parents’ restaurant?” and “So he’s been doing hidden ads, too.”
On January 22, local media outlet Edaily reported that Cha Eun-woo received a notice from the National Tax Service for tax arrears exceeding 20 billion won due to alleged income tax evasion. If confirmed, this would be the largest tax penalty ever imposed on a South Korean celebrity.
Authorities are said to be investigating the management and service contracts between the corporation owned by Cha Eun-woo’s mother and his talent agency, Fantasio, questioning whether channeling profits through various entities, including personal, corporate, and agency accounts, was a legitimate business operation or an attempt to evade taxes. The legitimacy of the corporation, described by some as a “paper company,” is now also under examination.
On the same day, Fantasio issued an official statement, acknowledging the investigation and emphasizing that whether the corporation established by Cha Eun-woo’s mother is subject to substantive taxation lies at the core of the case. “No final decision or notice has yet been issued,” the agency stated, adding, “We plan to faithfully comply with all legal procedures and provide explanations as necessary regarding the interpretation and application of the law.”
Meanwhile, Cha Eun-woo enlisted for active duty in the Republic of Korea Army in July of last year.
Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”
Photo=MHN DB
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* This article is provided by MHN Sports.