Cha Eunwoo Accused of Tax Evasion Worth 20 Billion Won...Systemic Flaws in Solo Agency Model Exposed

Entertainer Cha Eunwoo has received a notice from the National Tax Service demanding payment of income tax amounting to over 20 billion won. He was found to have avoided taxes by operating a 100% owned solo agency without carrying out any actual business activities, thereby exposing structural problems within the solo agency system in the entertainment industry.

Cha Eunwoo had been receiving his earnings through a solo agency in which he held 100% of the shares. The address of this agency was previously a charcoal-grilled eel restaurant on Ganghwa Island operated by Cha Eunwoo’s family. The National Tax Service determined that Cha Eunwoo ran a shell company with no real business operations in order to reduce his income tax liability.

As a result of intensive tax audits conducted by the National Tax Service in the first half of 2025, Cha Eunwoo was notified of a demand for payment of approximately 20 billion won in income tax. This represents the highest tax penalty ever imposed on an entertainer in the industry. The National Tax Service uncovered that Cha Eunwoo and his mother used a fictitious company named “DANNY” to secure a corporate tax rate 20% lower than the standard rate, thereby reducing their income tax liability by 45%.

Solo agencies have been rapidly spreading across the entertainment industry recently. This is because conducting real estate transactions through a corporation makes it relatively easier to obtain loans and reduces the burden of capital gains tax. As a result, there are even statements in the industry saying that “it’s foolish not to use a solo agency.”

MBC’s investigative program “Straight” reported on the practices of entertainers who abuse solo agencies. It traced how these nominal entertainment agencies operate and also addressed the systemic flaws that have led to their proliferation.

Cha Eunwoo, who is currently serving in military service, issued a statement through his personal account. He said, “I am deeply reflecting on whether my attitude toward fulfilling my tax obligations was strict enough, and I am sincerely remorseful.” He added, “I will earnestly comply with all future tax procedures, humbly accept the final decision of the relevant authorities, and take full responsibility.” He also clarified that joining the military was not a deliberate attempt to avoid controversy, explaining, “Last year, the situation became unavoidable to delay further, and I enlisted before completing the tax audit process.”