What tax evasion allegations does Cha Eun-woo face?

Cha Eun-woo faces allegations related to a company established by his mother, which investigators believe was a shell corporation used to lower his tax rates.

How much additional tax might Cha Eun-woo have to pay?

Cha Eun-woo might be liable to pay over 20 billion won, approximately $13.6 million, in additional income tax.

Did Cha Eun-woo's military enlistment affect the tax audit?

Cha Eun-woo stated that his military enlistment in July 2025 was not an intentional decision to avoid controversy, as he had reached a point where postponement was not possible.

Home / Arts and Entertainment / Cha Eun-woo Apologizes Amidst Multi-Million Dollar Tax Scandal

Cha Eun-woo Apologizes Amidst Multi-Million Dollar Tax Scandal

26 Jan

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Summary

Cha Eun-woo apologized for tax evasion allegations involving his mother's company.
He faces potential additional tax payments exceeding $13.6 million.
An audit revealed a shell corporation structure used to lower tax rates.

Cha Eun-woo Apologizes Amidst Multi-Million Dollar Tax Scandal

South Korean entertainer Cha Eun-woo has publicly apologized for tax evasion allegations involving a company founded by his mother. He expressed deep regret for causing concern and disappointment to his fans and associates. Cha Eun-woo stated he is undergoing serious self-reflection regarding his duty as a citizen to pay taxes responsibly.

The situation arose after the National Tax Service informed the 28-year-old actor he might owe over 20 billion won (approximately $13.6 million) in additional income tax. This follows an intensive audit last year, which industry sources suggest is the largest tax amount ever sought from an individual entertainer in South Korea.

Investigators found that the management firm, registered under his mother's name, functioned as a shell corporation with no substantial business operations. This arrangement reportedly allowed Cha Eun-woo's income to be taxed at a lower corporate rate, avoiding the higher personal income tax bracket. Both the actor and his mother were questioned about this setup.