Cha Eun-woo Faces Tax Evasion Allegations

Cha Eun-woo, a prominent South Korean K-pop idol and actor, is facing tax evasion allegations that came to light in 2025. The controversy centers around a "one-person company" reportedly managed by his mother, which the National Tax Service claims was used to unlawfully reduce his personal tax liabilities. This company, Cha's Gallery, was allegedly a paper entity that facilitated a switch from higher personal tax rates to lower corporate rates.

The company's broad business scope and the relocation of its headquarters to Ganghwa Island have drawn scrutiny. Further reports suggest corporate funds were used for personal expenses and family assets were registered under the company. Cha's Gallery was dissolved in 2024, and a new agency, D NY LLC, was reportedly established by his mother to manage his assets.

Responding to the allegations, Cha Eun-woo's agency, Fantagio, denied any wrongdoing. However, Cha Eun-woo himself posted a public apology on social media on January 27, 2026, expressing regret and pledging full cooperation with tax investigations. Despite his military service, his drama 'The Wonderfools' is slated for a 2026 premiere on Netflix, serving as his last appearance before his expected discharge in January 2027.

A final verdict on the tax evasion case is still pending. The controversy has already impacted Cha Eun-woo's public image and led to the cancellation of several brand collaborations. His future comeback after military service, alongside the ongoing tax investigation, remains a significant point of interest for his fans.