Cha Eun Woo Investigated by South Korean Tax Authorities, Allegedly Linked to a One-Man Agency Scheme

Cha Eun Woo (Doc. Ist)

WartaGate.com – South Korean actor and idol Cha Eun Woo has come under the spotlight after reports emerged that he is currently facing a tax investigation by the National Tax Service of South Korea.

He is suspected of having outstanding tax payments amounting to a staggering sum of over 20 billion won, or approximately IDR 229 billion.

The investigation stems from a tax audit conducted prior to Cha Eun Woo beginning his mandatory military service in July 2025.

After the audit results were released, Cha Eun Woo’s side immediately filed a formal objection and requested a review, stating that they believe the decision to be unfair.

During the investigation, tax authorities paid particular attention to a one-man agency owned by Cha Eun Woo and managed by his mother.

Although he has been under Fantagio since his trainee days, the True Beauty actor also carried out solo activities through this personal agency.

According to investigators, the existence of this one-man agency is suspected of being used as a means to reduce his personal income tax burden.

The alleged scheme involved transferring part of Cha Eun Woo’s income to the agency so that it would be subject to corporate tax of around 20%, instead of individual income tax rates that can reach up to 45%.

Preliminary audit findings stated that the one-man agency did not meet the criteria of a legitimate company.

One of the main reasons cited was its registered address, which is located in a remote area on Ganghwa Island and deemed irrelevant for the operation of an entertainment business.

Although the agency was recorded as owning assets such as luxury vehicles and incurring various expenses under the company’s name, investigators concluded that there was no real agency activity distinct from Fantagio’s role as his primary management.

Tax authorities also believe that the establishment of the agency was linked to internal conditions at Fantagio, which had frequently undergone management changes, prompting Cha Eun Woo’s mother to create a separate entity to safeguard her son’s career.

Not only Cha Eun Woo, but Fantagio has also been affected by this case.

In August 2025, the agency was reportedly hit with additional tax charges amounting to 8.2 billion won, or around IDR 94 billion.

Investigators suspect that Fantagio received invalid tax invoices issued by the one-man agency and included them in its tax filings, including value-added tax (VAT).

After summoning Cha Eun Woo and his mother for questioning, tax authorities concluded that the profits channeled into the one-man agency ultimately flowed back to Cha Eun Woo personally, leading them to determine that he had failed to fulfill a significant portion of his personal income tax obligations.

In response to the reports, Fantagio released an official statement on behalf of Cha Eun Woo.

They emphasized that the core issue lies in the interpretation of the legal status of the one-man agency and whether it should indeed be subject to the substantial tax imposed by the authorities.

Currently, Cha Eun Woo and his legal team have stated that they are ready to fully cooperate with the review process.

They also reaffirmed the actor’s commitment to complying with the law and fulfilling his obligations as a citizen of South Korea

If the request for review is approved, Cha Eun Woo will not be required to pay the tax. However, if it is rejected, he will have to settle the assessed amount and will still have the option to file a further appeal.