Cha Eun-wooone of the most profitable figures in the entertainment industry in South Koreabroke its silence on January 26 regarding allegations that it owes more than 20 billion won (approximately $14 million) in unreported taxes.
The actor and singer of 28 years published a statement on his Instagram while fulfilling his conscription: «I will humbly accept the final judgment of the relevant authorities and take full responsibility depending on the outcome.»
The artist added that he felt «deeply sorry» for the controversy and promised to faithfully comply with all tax procedures going forward.
This statement comes four days after his agency, Fantagioindicated that the matter had not been «finally confirmed or officially notified», ensuring that they would seek to clarify their position through legal means.
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However, the case has captured global attention due to the magnitude of the figure, considered one of the larger individual tax audits against one celebrity in the history of the country.
Who is Cha Eun-woo?
Legally known as Lee Dong-minCha Eun-woo is a global phenomenon that transcends music and acting.
As ambassador of luxury houses such as Dior y YSLthe artist managed, as of February 2025, around 93 active advertising contracts. His influence It ranges from banking to cosmetics, establishing it as one of the most coveted and commercial faces in Asia.
He debuted in 2016 with the K-Pop group ASTRO and achieved TV star status with internationally successful Korean dramas such as True Beauty (2020) y A Good Day to Be a Dog (2023).
In February 2024, he released his first solo EP, «Entity.» Nicknamed by the media as the «Genius of the face» (Face Genius), has a fan base on Instagram that exceeds 47 million.
The accusations: a network of «ghost companies»
He National Revenue Service of South Korea (NTS) notified Cha last year about a possible million-dollar debt following an audit carried out in the first half of 2025.
The investigation points to a company established in October 2022 in the name of his motheridentified as «Corporation A». Authorities allege that the company operated as a «paper company» with no real commercial operations.
Although the firm claimed to be involved in album management and production activities, investigators determined that its primary purpose was to channel Cha’s income to be taxed at (significantly lower) corporate rates rather than personal income tax rates, which in South Korea can be as high as 45%.
Defense and the legal future
Cha’s legal representation has filed a request for revision prior to taxation, arguing that the company is a legally registered corporation.
According to The Chosun Dailythe defense argues that the artist’s mother created this structure to protect her son’s career in the face of the administrative instability of his main agency, Fantagio, seeking more direct and secure asset management.
For its part, the agency has maintained a cautious stance, indicating that the matter has not been «officially confirmed» in its entirety, but the outcome of this process could set a precedent for how tax authorities evaluate the family corporate structures of high-profile celebrities in the future.
This conflict has put the actor’s commercial image on hold, while the courts evaluate whether there was a deliberate intention to hide income or whether it was a misinterpretation of current regulations.
Eun-woo’s release on Instagram
In your personal statementCha was blunt in denying the rumors about his entry into the army: «I deeply regret that my enlistment was misinterpreted as an attempt to avoid this controversy; my enlistment was planned in advance and not to evade my duties.»he clarified.
The actor insisted that his time in military service has been one of introspection, stressing that «will assume the corresponding responsibility» once the final ruling is issued.
«I will faithfully collaborate with all stages of the process and accept the judgment of the authorities»he wrote, seeking to mitigate reputational damage in a society where tax ethics are judged harshly.
For now, the case remains under review following Cha’s formal objection. The artist plans finish your military service in January 2027.
