Cha Eun Woo Releases Personal Statement Addressing Tax Evasion Allegations

PARIS, FRANCE – JUNE 24: (EDITORIAL USE ONLY) Cha Eun-woo attends the Saint Laurent Menswear Spring/Summer 2026 show as part of Paris Fashion Week on June 24, 2025 in Paris, France. (Photo by Pascal Le Segretain/Getty Images)

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Cha Eun-woo, one of South Korea’s most commercially successful entertainers, broke his silence on January 26 regarding allegations that he owes more than 20 billion won ($14 million) in additional income taxes. The 28-year-old actor and singer posted an apology on social media while currently serving mandatory military service.

“I will humbly accept the final judgment made by the relevant authorities and take full responsibility in accordance with the outcome,” Cha wrote in his statement, according to The Korea Herald. He added that he was “deeply sorry” over the controversy and vowed to “comply faithfully with all tax-related procedures going forward.”

The apology comes four days after his agency Fantagio released an initial statement saying the matter had not been “finally confirmed or officially notified” and that they would “actively clarify” their position through legal procedures.

Who Is Cha Eun-woo?

Cha Eun-woo (born Lee Dong-min) is a global ambassador for Dior and Burberry and serves as a brand ambassador for dozens of other companies, reportedly holding 93 endorsement deals as of February 2025. His extensive commercial partnerships span luxury fashion houses, consumer brands, financial institutions like Shinhan Bank, and cosmetics companies.

He debuted with boy group ASTRO in 2016 and later became one of K-drama’s most recognizable leading men through starring roles in hit series including My ID is Gangnam Beauty (2018), True Beauty (2020-2021), Island (2022-2023), and A Good Day to Be a Dog (2023-2024). He debuted as a solo artist with the EP “Entity” in February 2024.

The media nicknamed him “Genius Face” for his appearance, and he has been repeatedly ranked among the most handsome faces globally. He boasts over 16 million Instagram followers.

The Allegations

South Korea’s National Tax Service reportedly notified Cha last year that he could owe more than 20 billion won in additional income taxes following an audit conducted in the first half of 2025, prior to his military enlistment in July, according to multiple Korean media reports. The amount represents what is believed to be the largest tax assessment reportedly sought from an individual entertainer in South Korea.

The investigation reportedly centers on a company established in October 2022 and registered under Cha’s mother, identified by the surname Choi. The company, referred to in reports as “Cha’s Gallery” or “A Corporation,” was initially registered at an address in Ganghwa-gun, Incheon—the same location as an eel restaurant reportedly run by Cha’s parents.

Tax authorities allegedly concluded that the company functioned as a “paper company” with no substantive business operations. According to reports of the National Tax Service assessment, while the company claimed involvement in album production, management planning, and advertising, investigators reportedly determined it lacked actual business activity and existed primarily to channel Cha’s entertainment income through corporate tax rates rather than personal income tax rates.

Personal income tax in South Korea can reach up to 45 percent, while corporate tax rates are significantly lower. The National Tax Service allegedly found that Cha’s income was distributed among himself personally, his agency Fantagio, and his mother’s company, which authorities claim resulted in substantial tax savings.

The Company Under Investigation

The registered address of Cha’s mother’s company reportedly raised questions for investigators. The Korea Herald reported that the company’s listed location was “in Bureun-myeon, Ganghwa-gun, Incheon—the same location as an eel restaurant run by Cha’s parents.”

According to reports, the National Tax Service noted in its assessment that “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.” Authorities also reportedly noted that while multiple imported cars were registered under the company and various expenses were processed, “there was reportedly no differentiated service provided compared to Fantagio.”

Records show the company changed its registered address to an office in Gangnam District, Seoul on December 23, 2025. Around the same time, the family’s eel restaurant reportedly relocated and expanded to Cheongdam-dong, also in Gangnam.

Authorities also allegedly discovered a second company established by Cha’s mother, originally named LNC and later rebranded as The Annie, which reportedly managed Cha’s real estate properties.

The Defense

Cha’s representatives filed a pre-taxation review request formally disputing the findings. In their defense, they argued that the company “is not a paper company without substance but a legally registered corporation in the field of popular culture and arts planning,” according to reports.

The defense further claimed that “due to frequent changes in Fantagio’s representatives, Cha’s mother, feeling anxious about her son’s entertainment activities and determined to protect him, established the company to directly manage his career,” according to reports in The Chosun Daily.

Fantagio’s initial statement emphasized that “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.” The agency stressed that “nothing has been finally confirmed or officially notified at this time.”

The Broader Investigation

The probe into Cha’s finances reportedly emerged during a broader investigation into Fantagio itself. The agency was ordered in August 2025 to pay 8.2 billion won in additional taxes, according to reports. Officials reportedly uncovered the alleged scheme involving Cha’s mother’s company while examining Fantagio’s financial structure.

The case represents one of the highest-profile tax investigations involving a Korean entertainment figure in recent years. The reported size of the alleged tax shortfall—20 billion won—has drawn significant attention both within South Korea and internationally.

Commercial Fallout

Major brands have reportedly begun distancing themselves from the 28-year-old star, one of South Korea’s most sought-after celebrity endorsers. According to multiple reports, companies including Shinhan Bank and cosmetics company Abib have pulled or quietly sidelined advertising campaigns featuring Cha since the allegations surfaced.

The Korea Herald reported that “the advertising industry has begun distancing itself from the star” following the news. Given Cha’s extensive endorsement portfolio—he has served as a brand ambassador for numerous luxury and consumer brands—the commercial impact could be substantial.

What Happens Next

Cha is currently serving his mandatory military service and is scheduled to be discharged in January 2027. His personal apology represents his first direct statement on the allegations, breaking the silence maintained since Fantagio’s initial response on January 22.

The National Tax Service has not announced a final determination, and no criminal charges have been filed or confirmed. The case remains under review following Cha’s formal objection to the tax assessment.

In his statement, Cha committed to accepting whatever judgment authorities ultimately reach and promised full cooperation with the investigation process.

The case highlights the scrutiny facing high-earning Korean celebrities, like Cha Eun Woo himself, over tax arrangements, particularly those involving family-controlled companies. The outcome could influence how entertainment income and corporate structures are evaluated by tax authorities moving forward.

FULL STATEMENT

Hello, this is Cha Eun Woo.

I sincerely bow my head and apologize for causing concern and disappointment to many people due to various recent matters involving me.

Taking this incident as an opportunity, I have deeply reflected on whether my attitude toward my duty as a citizen of the Republic of Korea, particularly regarding tax payments, was sufficiently rigorous.

For the past few days, I have spent time contemplating and reflecting on what words I should offer first to convey even a little bit of my regret to those who were hurt by me.

I was worried that a lengthy explanation might sound like an excuse or even cause further fatigue, but I came to the conclusion that it is my duty to address this matter directly and offer my apology.

I am writing this after finishing my daily duties within the military unit.

Currently, I am serving in the military, but this was by no means an intentional choice to avoid this controversy. Last year, I was in a situation where I could no longer postpone my military enlistment, and thus I enlisted without being able to complete the tax investigation procedures.

However, I deeply feel the responsibility for this misunderstanding, which also stemmed from my own shortcomings.

If I were not a soldier at the moment, I would want to personally visit and bow my head to all those who were harmed by this incident. With that sentiment, I am writing this letter with all my sincerity.

For the long period of the past 11 years, despite having more shortcomings than possessions, I was able to be in this undeserved position as “Cha Eun Woo” thanks to your unreserved love and support.

Therefore, I am indescribably sorry for not even being able to repay but to have caused great pain and fatigue to all those who believed in and supported me despite my inadequacies and to the many people I have worked with.

I will faithfully participate in the tax-related procedures that will procedures in the future.

Furthermore, I will humbly accept the final decision made by the relevant authorities and take full responsibility accordingly.

In the future, I will reflect on myself more rigorously and live with a greater sense of responsibility, with the mindset of repaying the love I have received.

Once again, I sincerely apologize for causing concern.

January 26, 2026

Sincerely,

Cha Eun Woo