Cha Eun-woo Faces ₩200 Billion Tax Evasion Probe
- Hajin Kim
- Feb 24
- 1 min read
Feb 24, 2026
Hajin Kim
Seoul, South Korea — K-pop star and actor Cha Eun-woo is under investigation for alleged tax evasion worth nearly ₩200 billion (about $150 million USD). The Seoul Regional Tax Office suspects that a one-person company, founded by Cha’s mother, was used to divert his entertainment income.
Authorities claim the company signed contracts with his agency, Fantagio, but provided no real services, functioning instead as a “paper company.” By splitting income between Fantagio, the company, and Cha himself, lower corporate tax rates were allegedly applied to reduce his personal tax burden.
Cha’s representatives argue that the main issue is whether the company qualifies as a taxable entity. They stressed that no final ruling has been made and promised full cooperation with the investigation.
The controversy grew when local media reported that the company’s registered address was linked to a former eel restaurant, raising doubts about its legitimacy.
Legal experts warn that if the allegations are confirmed, Cha could face charges under Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. Tax evasion exceeding ₩10 billion can result in at least five years in prison.
The case, considered one of the largest involving a Korean celebrity, has shocked fans and the entertainment industry.
