Cha Eun Woo, the beloved actor and ASTRO member, has personally spoken out about serious tax evasion allegations. He posted a detailed apology on his Instagram on January 26, 2026, directly addressing reports that South Korea’s National Tax Service is seeking over 20 billion won (approximately $13.7 million) in additional taxes from him.
The star is currently serving his mandatory military service, with a scheduled discharge date in January 2027. In his statement, he apologized for causing concern, promised full cooperation with authorities, and clarified that his enlistment was not an attempt to avoid the investigation. His agency, Fantagio, and major brands tied to him are also reacting to the high-profile case.
The Core of the Tax Investigation
The investigation centers on a company established by Cha Eun Woo’s mother in October 2022. Tax authorities reportedly concluded this company functioned as a “paper company” or a shell corporation with no real business operations.
Authorities allege the company was used to route Cha Eun Woo’s substantial entertainment income. The key issue is the difference in tax rates: South Korea’s personal income tax can reach up to 45 percent, while corporate tax rates are significantly lower. By splitting his earnings among his official agency Fantagio, his mother’s company, and himself personally, a large tax savings was allegedly achieved.
The National Tax Service’s investigation reportedly noted that the company’s original registered address was in a remote area of Ganghwa Island, the same location as an eel restaurant run by Cha’s parents, which was not suitable for an entertainment business. The company’s address was later changed to an office in Seoul’s Gangnam district in December 2025.
Cha Eun Woo’s Personal Statement and Agency Response
Facing mounting public scrutiny, Cha Eun Woo broke his silence from within his military unit. He posted a black image on Instagram containing a long, handwritten-style apology.
“I sincerely bow my head and apologize for causing concern and disappointment to many people due to various recent matters involving me,” he began. “Taking this incident as an opportunity, I have deeply reflected on whether my attitude toward my duty as a citizen of the Republic of Korea, particularly regarding tax payments, was sufficiently rigorous.”
He directly addressed the timing of his military enlistment, stating, “Currently, I am serving in the military, but this was by no means an intentional choice to avoid this controversy.” He explained he was in a situation where he could no longer postpone enlistment and had to begin service before the tax procedures concluded.
The actor-singer ended his statement with a vow: “I will faithfully participate in the tax-related procedures that will proceed in the future. Furthermore, I will humbly accept the final decision made by the relevant authorities and take full responsibility accordingly.”
His agency, Fantagio, had issued an initial statement on January 22, and followed up with another on January 27. The agency emphasized that the matter is still under review and the core legal question is whether the company in question qualifies as a substantive taxable entity. Fantagio stated they plan to “actively clarify” their position through legal procedures.
Immediate Commercial Consequences and Public Reaction
The allegations have triggered immediate commercial fallout for one of South Korea’s most in-demand celebrity endorsers. Cha Eun Woo reportedly held 93 endorsement deals as of February 2025, representing major luxury fashion houses, banks, and cosmetic companies.
Several brands have already begun distancing themselves. Shinhan Bank has set all videos and posts featuring Cha Eun Woo on its official social media channels to private. This move is notable as the bank had previously replaced actor Kim Soo-hyun with Cha Eun Woo after a different controversy.
Skincare brand Abib and fashion brand Marithe Francois Girbaud have also made promotional content featuring the star private on their platforms. The advertising industry is reportedly beginning to distance itself from the star.
On social media, fan reactions are mixed. Some fans express unwavering support, emphasizing trust in his character and the principle of innocence until proven guilty. Other public commentary has been critical, focusing on the scale of the alleged tax avoidance and its implications.
Also Read:
What Happens Next for Cha Eun Woo
The legal and administrative process is ongoing. Cha Eun Woo and his representatives have filed a formal objection to the National Tax Service’s assessment, disputing the findings. The National Tax Service has not announced a final determination, and no criminal charges have been filed.
The case emerged during a broader tax investigation into Fantagio, which was itself ordered to pay 8.2 billion won in additional taxes in August 2025. The reported 20 billion won assessment against Cha Eun Woo is believed to be the largest ever for an individual Korean entertainer.
As a soldier, Cha Eun Woo’s ability to participate directly in proceedings may be limited until his discharge in 2027. His statement and Fantagio’s comments indicate they will continue to cooperate with authorities through representatives. The final outcome will depend on the result of the tax review and any subsequent legal appeals.
Also Read: The Beauty Series Review: Should You Watch the New Hulu Horror Show?
Stay informed with more exclusive updates and in-depth stories about your favorite stars only on VvipTimes.
