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K-pop star Cha Eun Woo faces 20-billion won tax evasion allegation
This is the largest ever tax evasion accusation against a Korean celebrity and has caused advertisers to withdraw support for the singer-actor
- PUBLISHED: Sun 25 Jan 2026, 5:23 PM
K-pop star Cha Eun Woo has been accused of not paying over 20 billion won (over Dh50 million or $14 million) in income taxes, in the largest ever tax evasion scandal to hit the Korean entertainment industry.
Following the allegations that hit the press on Thursday, brands that have worked with Cha have quietly deleted social media posts featuring the singer-actor.
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Here is what we know so far about the case.
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'Paper company'
The National Tax Service in South Korea says that Cha evaded paying his full income tax by splitting his income among three different entities — his label Fantagio, himself and a company owned by his mother.
He is accused of setting up his mother's company as a means of lowering his own income and evading taxes — essentially setting up what is known as a 'paper company'. This type of company does not provide any services but is simply used to apply a lower corporate tax rate rather than a higher income tax one.
According to Korean media reports, the company is registered at the same address as an eel restaurant run by Cha's parents.
Response from Fantagio
Cha's label responded to the allegations saying that it has not been confirmed officially that the company under the celebrity's mother's name is taxable or not — a key point that would determine whether illegal action has taken place.
"We plan to actively clarify the matter in accordance with lawful procedures," the label said.
“In order for the process to be concluded as swiftly as possible, the artist and his tax representative will cooperate diligently. We assure you that Cha Eun Woo will continue, as a citizen of (South Korea), to faithfully fulfill tax filings and his legal obligations.”
Advertisers pull out
A scandal this big was seemingly more than enough for companies to get cold feet. Cha is one of Korea's most recognisable celebrities, known not only for his good looks (which other celebrities have often said they aspire to) but also for his 'clean' image and gentle demeanour. A tax evasion allegation clouds this brand and has given advertisers cause for concern.
Shinhan Bank and Abib (a skincare brand) have quietly either removed videos and posts featuring the singer-actor, or have made them private after the allegations came to light.
Other brands that work with Cha include Calvin Klein, Saint Laurent, LG and more.
What do fans say?
Fans are divided between championing their favourite celebrity and waiting for the law to deliver justice.
Many online have bashed Abib, saying that the brand should not distance itself from Cha before a final verdict is made. They also think that the allegations should not have been made public before they were confirmed.
Cha is currently completing his mandatory military service, which started on July 28, 2025 and will end in January 2027.
