Cha Eun Woo mother’s agency revealed as eel restaurant amid 20 billion KRW (13.6 million USD) tax allegations

Cha Eun Woo, a member of ASTRO and an actor, is facing renewed scrutiny over allegations involving 20 billion KRW (approximately 13.6 million USD) in unpaid taxes, as controversy continues over a company established by his mother.

According to corporate registration records, Company A, founded by Cha Eun Woo’s mother in October 2022, is registered as an eel restaurant located on Ganghwa Island. The restaurant is reportedly operated by Cha Eun Woo’s family. However, further questions were raised after it was revealed that the company’s standard industrial classification is listed as managerial services rather than food service.

On January 22, Cha Eun Woo’s agency Fantagio stated that it would review the matter further. Speaking to Star News, the agency said, “Aside from the official statement already provided, we will organize and release an additional statement if further confirmation becomes necessary,” adding that it would look into why the company was registered under managerial services.

That same day, media reports claimed that Cha Eun Woo underwent an intensive tax investigation by the Seoul Regional Tax Office during the first half of last year. Authorities reportedly suspected that, despite being signed to an entertainment agency, a separate family-owned company was established and used to sign service contracts to reduce tax obligations.

According to the reports, Cha Eun Woo entered into an entertainment activity support services agreement involving Fantagio and Company A, which was founded by his mother, identified only as Ms. Choi. His income was allegedly distributed among Fantagio, Company A, and Cha Eun Woo himself.

The National Tax Service reportedly determined that Company A did not provide substantial services and classified it as a so-called paper company. Investigators reportedly concluded that the entity was used to shift income from an individual income tax rate of up to 45 percent to a corporate tax rate more than 20 percentage points lower.

As a result, tax authorities assessed that profits accumulated by Company A ultimately flowed back to Cha Eun Woo, leading to the conclusion that more than 20 billion KRW (13.6 million USD) in income tax had not been paid.

However, Cha Eun Woo’s side has denied claims that Company A is a shell entity, stating that it is a properly registered entertainment management business. He is reportedly awaiting the results of a pre-tax assessment review filed in objection to the tax authority’s decision.

Fantagio emphasized that the case has not yet been finalized, stating, “The key issue is whether the company established by Cha Eun Woo’s mother qualifies as a legitimate taxable entity. This matter has not been conclusively determined or officially notified, and we plan to actively present our position through proper legal procedures.”

The agency added, “Cha Eun Woo and his tax representatives will cooperate fully to ensure the process is resolved promptly,” and concluded by saying, “Cha Eun Woo will continue to faithfully fulfill his tax reporting and legal obligations as a citizen.”