When Cha Eun Woo Allegedly Embezzled More Than 20 Billion Won in Taxes

Cha Eun Woo, who is currently serving in the military, has been embroiled in unsavory rumors. He has been implicated in alleged tax evasion of 20 billion won. This suspicion stems from allegations of fraud committed by the star of the series "True Beauty." 

According to Star News, Cha Eun Woo was the target of an investigation by the Seoul Regional Tax Office's Bureau of Investigation 4 last year. This relates to the establishment of a separate family agency from Fantagio, but still managing Cha Eun Woo's work. 

The second agency, known as Management A, was founded by Cha Eun Woo's mother. He is suspected of income tax evasion and other tax evasion. The South Korean actor and singer reportedly owes over 20 billion won. This figure is said to stem from a tax audit conducted before his enlistment in July 2025. 

The National Tax Service suspects the company was established as a tax-cutting scheme. It also suspects that funds were flowing to Fantagio, in the form of a revenue share from the Management A contract. The National Tax Service reported Management A as a fictitious company. 

This family agency was deemed to have provided no substantive services. Cha Eun Woo's tax status was confirmed as failing to pay income tax of over 20 billion won. Cha Eun Woo asked the National Tax Service to wait for his military service to complete before issuing a notification of the audit results. 

The National Tax Service stated that they had already sent a notification to Cha Eun Woo regarding the tax matters. Cha Eun Woo is scheduled to be discharged from the military on January 27, 2027. Fantagio, Cha Eun Woo's agency, issued an official statement:

"The main issue in this case is whether the company founded by Cha Eun Woo's mother falls into the category of entities subject to substantive taxation. There has been no final confirmation or official notification at this time, and we plan to actively clarify this issue in accordance with applicable legal procedures.

To ensure the process is completed as quickly as possible, the artist and his tax representatives will cooperate diligently. We assure you that Cha Eun Woo, as a citizen of this country, will continue to faithfully fulfill his tax and legal obligations."