Cha Eun Woo faces tax scrutiny over mother’s business
The controversy intensified after Edaily reported on Thursday that the National Tax Service had informed Cha Eun Woo of additional income tax liabilities exceeding 20 billion won (approximately $14 million).
SOUTH Korean idol and actor Cha Eun Woo.
Photograph courtesy of Cha Eun Woo/IG
A business registered under the name of actor Cha Eun Woo’s mother has come under renewed scrutiny after reports revealed that its listed address corresponds to a restaurant and another unrelated enterprise in Gimpo, Gyeonggi Province, raising further doubts amid an ongoing tax investigation.
According to records from an online database run by the Korea Creative Content Agency, the company was incorporated in June 2022 using an address tied to an eel restaurant and a separate business.
The disclosure followed online speculation claiming that the registered location of the company led to an eel restaurant on Ganghwa Island in Incheon, fueling debate over whether the firm had an actual operational base.
Cha’s agency, Fantagio, has previously maintained that his mother operates a lawful business that was registered as an entertainment management company in line with Korean regulations. However, when asked about the accuracy of the company’s registered address, Fantagio said it was “unable to confirm” the details.
The controversy intensified after Edaily reported on Thursday that the National Tax Service (NTS) had informed Cha Eun Woo of additional income tax liabilities exceeding 20 billion won (approximately $14 million).
Tax authorities reportedly believe that Cha’s mother set up a company that received a portion of the actor’s earnings, alongside Fantagio and Cha himself. The NTS has alleged that the company did not perform meaningful services and instead functioned as a paper entity designed to lower the overall tax burden on Cha’s income.
Fantagio responded by emphasizing that the dispute centers on the legal status of the company.
“The case has not yet been finally determined or formally notified, and we will actively present our position through appropriate legal procedures regarding issues of legal interpretation and application,” the agency said.
“The company will actively clarify its position through appropriate legal procedures concerning the interpretation and application of tax law.”
Fantagio added that Cha would fully engage with the review process.