Cha Eun Woo, a member of K-pop boy group ASTRO, is at the center of a major tax controversy after South Korea’s National Tax Service (NTS) accused him of evading over 20 billion won (PHP800 million) in taxes through a company allegedly set up by his mother.
On Thursday, January 22, 2026, various South Korean media outlets reported that the K-drama actor was investigated last year over how his income was structured.
The audit reportedly took place in July 2025, prior to Cha Eun Woo’s enlistment in mandatory military service.
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The allegations center on a so-called “one-person agency.”
The NTS alleged that despite being signed with entertainment label Fantagio, Cha Eun Woo and his mother set up a separate company—referred to in reports as "Company A"—which then signed a service contract with the main agency.
This arrangement allowed income to be redistributed in a way that significantly reduced tax liability.
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Following an investigation, authorities allegedly discovered that the company established by Cha Eun Woo’s mother was a “paper company” that provided no actual services.
Tax officials believed the setup was used to divert earnings through the company in order to take advantage of lower corporate tax rates.
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As a result, more than 20 billion won (almost PHP800 million) in taxes should have been paid had the income been filed directly under Cha Eun-woo’s personal tax records.
"The company’s registered address was located in a remote area of Ganghwa Island, which didn’t appear suitable for entertainment-related business, and it was difficult to consider it an actual office.
"While multiple imported cars were registered under the company and various expenses were processed, there was reportedly no differentiated service provided compared to Fantagio," NTS said.
Cha Eun Woo’s agency responds
Meanwhile, Cha Eun Woo’s agency Fantagio issued a statement addressing the allegations, clarifying that the case has not been formally "confirmed or notified."
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The agency said (according to the English translation on Soompi.com) "The key issue in this matter is whether the corporation established by Cha Eun Woo’s mother falls under the category of an entity subject to substantive taxation.
"Nothing has been finally confirmed or officially notified at this time, and we plan to actively clarify the matter in accordance with lawful procedures."
The agency added that Cha Eun Woo will cooperate with the investigation as a “responsible citizen.”
Fantagio stated: “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 this country, to faithfully fulfill tax filings and his legal obligations.”
Cha Eun Woo is currently serving his mandatory military service and is scheduled to be discharged in January 2027.
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