Cha Eun Woo has appointed law firm Shin & Kim (Sejong) as his legal team in facing the alleged tax evasion case of 20 billion Korean won involving his name. Quoted from Allkpop, Monday (January 26, 2026), the formal appointment of the law firm marks Cha Eun Woo's official response to the report issued by the National Tax Service. 

The root of the problem of alleged tax evasion by the star of the dramas Gangnam Beauty and True Beauty began because the company founded by his mother, A Corporation, acted as an intermediary between Fantagio Entertainment and Cha Eun Woo.

Fantagio and A Corporation signed a contract to provide support services for Cha Eun Woo's activities in the South Korean entertainment industry, with the artist's income being shared between Fantagio, A Corporation, and Cha Eun Woo. However, the National Tax Service has labeled A Corporation a fictitious, or  paper, company  that does not actually exist. 

Cha Eun Woo and his mother allegedly established this company to reduce income tax, which was 45% at the time, by distributing income through the company so that the tax rate applied was lower than the income tax rate. In response to this issue, Cha Eun Woo's side has now filed a request for a pre-assessment review, officially challenging the tax authorities' decision. 

Fantagio, the agency representing the actor, stated that it will actively provide explanations through legal procedures regarding issues related to the interpretation and application of tax law. "We will work together sincerely to ensure this process can be completed as quickly as possible," said Fantagio. 

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