Cha Eunwoo Accused of Tax Evasion Worth Over 20 Billion Won... Income Diversion Through Mother’s Company

Actor Cha Eunwoo has received a tax audit notice from the National Tax Service regarding allegations that he evaded income taxes worth over 20 billion won by diverting income through a company owned by his mother. The Investigation 4 Bureau of the Seoul Regional National Tax Service identified a structure in which Cha Eunwoo’s acting fees were distributed among his agency Fantagio, his mother’s company A, and Cha Eunwoo himself.

The National Tax Service determined that this structure constituted intentional income diversion aimed at reducing income tax burdens for high-income earners. While individual tax rates, including local taxes, can reach up to 49.5% for high earnings, these rates drop to around 20% when income is recorded as company revenue. The agency suspected tax evasion due to the fact that Company A, owned by Cha Eunwoo’s mother, received profits under an entertainment support contract despite failing to provide actual services to Fantagio or Cha Eunwoo.

The National Tax Service classified Company A as a “paper company” used to minimize tax liabilities and thus rejected transactions conducted through it. Fantagio also suffered consequences in this tax audit. The agency reported receiving “fake invoices” for the cost deductions based on Company A’s invoices and notified Fantagio of a tax demand totaling approximately 8.2 billion won.

Similar tax evasion allegations have repeatedly surfaced in the entertainment industry. Last April, actress Lee Hae-nui was forced to pay back around 6 billion won after transferring her income to company accounts operated by family members. Around the same time, actor Yoo Yeon-seok was ordered to repay approximately 3 billion won due to unreported earnings and unauthorized use of funds while establishing his own agency.

After being notified of the tax demand exceeding 20 billion won, Cha Eunwoo’s side has appealed the decision by filing a tax review request. Fantagio stated that the contract with Company A was part of legitimate management activities and pledged to actively defend itself through legal appeals. Coincidentally, it was revealed that Cha Eunwoo enlisted in the military shortly after receiving the tax audit notice, raising questions about whether the notification timing was intentionally delayed.