Cha Eun Woo dropped from Shinhan Bank ads after replacing Kim Soo Hyun as 20 billion KRW (~13.7 million USD) tax evasion allegation mount

ASTRO member and actor Cha Eun Woo is facing growing fallout in the advertising industry after reports emerged that he was slapped with more than 20 billion KRW (approx. 13.7 million USD) in additional income tax over alleged tax evasion.

According to OSEN on January 23, Shinhan Bank has switched all videos and posts featuring Cha Eun Woo on its official YouTube channel and social media accounts to private. The content currently displays messages such as “This video is unavailable” or “This is a private video,” making it inaccessible to the public. While the bank has not officially disclosed the reason for removing the videos and images, the move came immediately after Cha Eun Woo became embroiled in tax evasion allegations, leading many to believe the decision was influenced by the controversy. Notably, Shinhan Bank previously replaced Kim Soo Hyun with Cha Eun Woo as its model amid the late Kim Sae Ron’s controversy.

Cha Eun Woo is reportedly facing a demand for more than 20 billion KRW in additional income tax. Last year, the Seoul Regional Tax Office’s Investigation Division 4 conducted an intensive probe into suspicions that Cha Eun Woo had evaded taxes through a one-person agency established by his mother. The tax authorities subsequently notified him of additional income tax exceeding 20 billion KRW, the largest tax reassessment ever imposed on a Korean celebrity.

Cha Eun Woo has conducted his entertainment activities through an arrangement in which Fantagio, his official agency, and the one-person agency founded by his mother entered into a service agreement for entertainment-related support. It has been reported that the income he earned was distributed among Fantagio, the one-person agency, and Cha Eun Woo himself.

However, the National Tax Service reportedly concluded that the one-person agency set up by his mother was essentially a paper company that did not provide substantial services. Authorities believe Cha Eun Woo and his mother established the corporation to reduce income tax, which can reach as high as 45 percent, by splitting income and applying a corporate tax rate that is approximately 20 percentage points lower than the personal income tax rate.

In response, Fantagio stated, “The key issue in this case is whether the corporation established by Cha Eun Woo’s mother qualifies as a substantive taxable entity. This matter has not been finally confirmed or officially assessed, and we plan to actively present our position through lawful procedures regarding the interpretation and application of the law. The artist and his tax representatives will fully cooperate to ensure the process is concluded as swiftly as possible.”