ASTRO member and actor Cha Eun-woo is at the center of a major financial scandal. South Korea’s National Tax Service has notified him of an additional tax assessment exceeding 20 billion KRW (about $13.7 million USD). The allegation, which could be the largest ever for a Korean celebrity, involves a company set up by his mother. Major brands like Shinhan Bank and Abib have already removed his advertisements, and his old comments about becoming “an icon of this era” are being fiercely mocked online.
The 20 Billion KRW Tax Probe and the “Paper Company”
The controversy became public on January 22, 2026, when Korean media reported the results of an intensive tax audit. The Seoul Regional Tax Office investigated Cha Eun-woo in the first half of 2025. Authorities suspect he avoided taxes by using a one-person agency established by his mother in October 2022.
This company, registered under managerial services, was initially listed at the address of a family-run eel restaurant on Ganghwa Island. It later moved to an office in Seoul’s Nonhyeon-dong in December 2025. The National Tax Service determined this company was a “paper company” or shell entity that provided no real services. Investigators believe it was used to split Cha Eun-woo’s income from his agency, Fantagio, allowing him to be taxed at a lower corporate rate instead of the top personal income tax rate of 45%.
“The key issue in this case is whether the corporation established by Cha Eun Wooโs mother qualifies as a substantive taxable entity. This matter has not been finally confirmed or officially assessed,” Fantagio stated.
How Major Brands Are Reacting to the Controversy
The advertising industry moved quickly to distance itself from Cha Eun-woo. Shinhan Bank, which had chosen him as a model in early 2025, made all videos and posts featuring him private on its YouTube and social media channels. The bank had previously replaced actor Kim Soo-hyun with Cha Eun-woo after a separate controversy.
Skincare brand Abib, which named Cha Eun-woo its global ambassador in August 2024, also made his promotional videos private on YouTube and deleted related posts on Instagram and X (formerly Twitter). Another brand, BodyFriend, is in talks to replace him with non-celebrity models this year.
This swift removal of content highlights the high “model risk” companies now face. Industry experts suggest this case will lead to stricter background checks, including tax compliance, for celebrity endorsement contracts.
Fantagio’s Official Response and Legal Position
Cha Eun-woo’s agency, Fantagio, has issued a statement addressing the reports. The agency emphasized that the tax assessment is not final and that they plan to challenge it through legal channels.
“Nothing has been finally confirmed or officially notified at this time, and we plan to actively present our position through lawful procedures regarding the interpretation and application of the law. The artist and his tax representatives will fully cooperate to ensure the process is concluded as swiftly as possible,” Fantagio said.
The agency argues the core legal question is whether the company formed by Cha Eun-woo’s mother is a legitimate taxable entity. Fantagio itself was ordered to pay 8.2 billion KRW in additional taxes in August 2025, and the probe into Cha Eun-woo’s finances reportedly stemmed from that larger investigation.
Cha Eun-woo’s Military Service and the Investigation Timeline
A significant factor in this case is timing. Cha Eun-woo enlisted for his mandatory military service on July 28, 2025. The formal results of the tax investigation were delivered to him after he had already entered the army.
He is currently serving in the Ministry of National Defense’s Work Support Group and is scheduled for discharge in January 2027. Because the controversy erupted during his service, he cannot publicly address the allegations or participate directly in the legal process, leaving his agency to handle the response.
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Fan and Netizen Reactions to the Scandal
The news has sparked intense reactions online. A clip from Cha Eun-woo’s 2024 appearance on the talk show “You Quiz on the Block” has resurfaced, where he expressed a desire to become “an icon of this era”. Fans and netizens are now mockingly referring to him as an “icon of tax evasion”.
“Well, I guess he became one after all. An icon of tax evasion,” one comment read.
“His dream came true. Got it done but in a negative way,” another user wrote.
Beyond mockery, many netizens are expressing serious disappointment, arguing that tax evasion by highly paid celebrities is a direct harm to the public.
“Tax evasion is a crime that directly affects us. And celebrities make money by being loved by the public, yet they donโt want to give back to society through taxes,” one netizen commented.
“If you made a lot of money, then pay your taxes and do your job to help society,” said another.
The scandal has also unintentionally affected his famous friend group, the “97-line,” with old photos of him with SEVENTEEN’s Mingyu being circulated online with negative captions.
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