South Korean singer-actor Cha Eun-woo has found himself at the centre of an intense public spotlight, not for a new project, but for a tax investigation that has quietly unfolded behind the scenes. According to multiple Korean media reports, tax authorities began looking into his financial arrangements earlier this year, just months before his military enlistment, sparking widespread discussion across online communities.
An exclusive report revealed that the National Tax Service launched an audit in spring 2025, examining whether Cha Eun-woo had reduced his personal income tax through a one-person company established under his mother’s name.
Investigators reportedly believe the structure allowed income to be channelled through a corporate entity rather than taxed under the higher personal income bracket.
Authorities claim the company was positioned between Cha Eun-woo and his long-time agency Fantagio, effectively splitting earnings.
The tax office concluded that the company did not provide any substantial services and classified it as a paper entity, allegedly created to benefit from lower corporate tax rates. Based on this assessment, the investigation was expanded to include Fantagio itself.
Fantagio was later issued an additional tax bill of 8.2 billion won following the audit. Officials stated the agency had processed what they described as improper tax invoices issued by the company in question, including value-added tax. Fantagio has since requested a review, but the outcome reportedly remained unchanged.
Tax authorities also questioned Cha Eun-woo and his mother separately before concluding that profits generated by the company eventually flowed back to the actor.
As a result, the NTS claims unpaid personal income tax exceeding 20 billion won. The formal tax notice was reportedly sent only after Cha Eun-woo completed the administrative steps related to his military enlistment in July 2025.
Cha Eun-woo’s representatives strongly disagree with the findings. His side has filed an appeal, requesting a pre-taxation review and arguing that the accusations are unfair.
They stated that the company was legally established out of concern for unstable management changes within Fantagio at the time, and was intended to directly protect and manage Cha Eun-woo’s career activities rather than function as a shell company.
Fantagio also addressed the issue, emphasising that no final decision has been made by authorities. The agency stated that it plans to fully explain its legal position through proper procedures and reiterated that Cha Eun-woo continues to fulfil all his tax and legal obligations as a responsible citizen.
Online reactions have been sharply divided. Some fans have expressed trust in Cha Eun-woo, pointing out that the case is still under review and warning against rushing to judgement.
Others have questioned the structure itself, arguing that public figures should be extra transparent with financial arrangements. Meanwhile, some netizens remain cautious, waiting for an official conclusion before forming an opinion.
As the review process continues, public attention shows no sign of fading. What do you think about this case, and should celebrities be held to a higher standard when it comes to financial management? Share your thoughts, because this conversation is far from over.