Cha Eun-woo is one of South Korea’s most prominent and loved K-pop idols and actors. He started as a member of the K-pop group ASTRO and soon ventured into acting. Known for his roles in dramas like Rookie Historian Goo Hye-ryeung, True Beauty, The Island, and others, he amassed quite a fan following. He is currently enlisted in the military as part of South Korea’s mandatory military service for men. However, things are not smooth for the actor, as he has been facing tax evasion charges since 2025. The troubles have continued to date, and here’s a complete breakdown of the issue right from the moment it all began.
What is the tax scandal involving Cha Eun-woo?
According to The Korea Times, the scandal first came to light when South Korea’s National Tax Service (NTS) issued an additional tax assessment reportedly exceeding ₩20 billion—approximately $13.6 to $14 million—after an audit of Cha Eun-woo’s financial records. The issue arose after the findings of a “one-person company” helmed by the actor’s mother. This company acted as a medium between the actor and his label, Fantagio.
What instigated the audit further was that the company did not provide the required services and was simply a paper company. The involvement of this company enabled Cha Eun-woo to reduce his taxes by switching from a higher personal tax rate to a lower corporate rate. The company was listed as Cha’s Gallery and featured Cha Eun-woo as the CEO, his mother as an internal director, and his father handling finances. The agency’s scope of work spanned 34 business areas, which was unusually broad for a single entity. Investigations also further revealed that the company’s headquarters were moved to Ganghwa Island in 2022. The place is home to Cha’s parents’ eel restaurant.
Dispatch’s reports also further alleged that the company was paying salaries to Cha Eun-woo’s parents, that corporate credit cards were used for personal and household expenses, and that a family vehicle was registered under the company’s name. However, the company was dissolved in 2024. Soon after, Cha Eun-woo’s mother allegedly set up a new agency, D NY LLC, to manage the actor’s assets. As of January 2026, the company’s assets remain unused and unfinished, further fueling speculation about tax evasion.
How did Cha Eun-woo respond to the allegations?
As a result of the tax evasion allegations, several brands quietly removed or canceled their collaborations with the actor. Cha Eun-woo’s company, Fantagio, denied any wrongdoing and said that the company, helmed by the actor’s mother, was functioning as intended.
On January 27, 2026, while serving in the military, Cha Eun-woo posted a public apology on social media. The long apology letter expresses the actor’s regret over the findings and said that he will participate in any tax investigations as necessary and that he will take full responsibility.
A final verdict on the matter is yet to be announced. However, the case has already caused a dent in Cha Eun-woo’s reputation. With his absence due to military enlistment and the brand deals shutting down, it remains to be seen how he will come back from this.
What is next for Cha Eun-woo?
While Cha Eun-woo is currently serving in the military, he wrapped up a project before his enlistment. He will be seen in the drama The Wonderfools, which is scheduled to premiere on Netflix in 2026. Cha Eun-woo is not expected to be discharged until January 2027, and hence this drama will serve as his last on-screen appearance for the near future.
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