Cha Eun-woo recently filed an official appeal against a ₩13 billion KRW tax assessment from South Korea's National Tax Service (NTS). While he had previously stated that he had already paid the disputed amount, this step was taken to ensure proper tax determination through legal channels, according to his agency, Fantagio.
The controversy stemmed from an investigation into alleged tax evasion involving Cha Eun-woo and his mother. They were accused of evading up to 200 billion won in taxes through companies registered under their names.
After the tax investigation became public, Cha Eun-woo apologized for causing concern and confirmed that he had paid all relevant taxes related to the case. Cha, who is currently serving his mandatory military service, publicly addressed the controversy in April 2026.
In a social media statement, he apologized to fans and others who may have been affected by the tax allegations. He also acknowledged personal responsibility for the situation, particularly regarding the management company his mother founded during a time of career uncertainty.
Cha Eun-woo explained that the company was created to provide career stability but acknowledged shortcomings in addressing the tax implications.
The case further complicated matters in February 2026 when a civil society group, the Korea Taxpayers' Union, filed a criminal complaint against NTS and a journalist for violating the taxpayer confidentiality law.
The group asserted that the premature public judgment and social stigma stemming from the unauthorized disclosure of details of Cha Eun-woo's tax audit had damaged his reputation. They emphasized that Cha deserves the presumption of innocence and the same rights as other taxpayers.
SBS also reported that the Seoul Regional Tax Office, Fourth Bureau of Investigation, conducted a surprise audit last year and informed Cha of an additional income tax assessment exceeding 20 billion won.
The NTS suspects that the profit distribution between Cha's agency and a company linked to his mother involved a corporate structure designed to reduce personal income tax liabilities.
A statement from Fantagio on August 2, 2026 confirmed that Cha Eun-woo had followed all legal procedures by filing an appeal and that the details of the case would remain confidential as the legal process progresses.
It is interesting to note that, despite this ongoing controversy, Cha Eun-woo remains focused on his military duties and there has been no change in his status, according to the explanation from the relevant ministry.
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