Lawyer Explains Cha Eun Woo’s $20 Billion Won Tax Case: Could It Actually Lead to Criminal Charges?

More lawyers have provided an analysis of the allegations against Cha Eun Woo regarding income tax evasion, reportedly amounting to around 20 billion won. Lawyer Kim Jung Ki appeared on a YTN Radio show titled Lawyer Lee Won Hwa’s Case X-Files (literal translation) to discuss the case on January 30, 2026. 

He explained that the 20 billion won penalty is the largest ever imposed on a celebrity in Korea and one of the highest globally. He pointed out that most celebrity tax evasion cases involve amounts ranging from hundreds of millions to billions of won, making this 20 billion won figure exceptional. 

Experts believe that the 20 billion won penalty suggests Cha Eun Woo’s income must be at least 100 billion won. This amount is similar to tax evasion cases involving top stars like Fan Bingbing and Cristiano Ronaldo. However, Lawyer Kim emphasized that this is not a final tax decision yet. 

The National Tax Service has only notified Cha Eun Woo’s team of the additional tax amount, and his side is appealing the judgment. Before final taxes are imposed, the NTS gives taxpayers a chance to review the decision. 

Cha Eun Woo’s team must provide proof that they didn’t use illegal tactics and that the company set up by his mother was a legitimate business. This would include evidence like employee salaries, office leases and activity logs. 

If no actual work was done, it would be hard to challenge the NTS decision. Kim also addressed the possibility of criminal penalties, stating that if it’s just a mistake, paying the additional tax would be the end of the matter. 

However, if there was intentional fraud, it could lead to prosecution. He stressed that issuing false invoices or manipulating accounts would be serious, punishable by prison or heavy fines under the Punishment of Tax Offenses Act in South Korea.

If the evaded tax exceeds 1 billion won, a law could apply that might lead to life imprisonment or a minimum of five years in prison. In that case, both Cha Eun Woo’s mother and Cha Eun Woo could be investigated as accomplices, depending on who was responsible for the tax evasion.