Cha Eun-woo is one among South Korea’s most distinguished and loved K-pop idols and actors. He began as a member of the K-pop group ASTRO and shortly ventured into acting. Known for his roles in dramas like Rookie Historian Goo Hye-ryeung, True Beauty, The Island, and others, he amassed quite a fan following. He’s currently enlisted within the military as a part of South Korea’s mandatory military service for men. Nonetheless, things aren’t smooth for the actor, as he has been facing tax evasion charges since 2025. The troubles have continued thus far, and here’s a whole breakdown of the problem right from the moment all of it began.
What’s the tax scandal involving Cha Eun-woo?
In line with The Korea Times, the scandal first got here to light when South Korea’s National Tax Service (NTS) issued a further tax assessment reportedly exceeding ₩20 billion—roughly $13.6 to $14 million—after an audit of Cha Eun-woo’s financial records. The difficulty arose after the findings of a “one-person company” helmed by the actor’s mother. This company acted as a medium between the actor and his label, Fantagio.
What instigated the audit further was that the corporate didn’t provide the required services and was simply a paper company. The involvement of this company enabled Cha Eun-woo to cut back his taxes by switching from the next personal tax rate to a lower corporate rate. The corporate was listed as Cha’s Gallery and featured Cha Eun-woo because the CEO, his mother as an internal director, and his father handling funds. The agency’s scope of labor spanned 34 business areas, which was unusually broad for a single entity. Investigations also further revealed that the corporate’s headquarters were moved to Ganghwa Island in 2022. The place is home to Cha’s parents’ eel restaurant.
Dispatch’s reports also further alleged that the corporate was paying salaries to Cha Eun-woo’s parents, that corporate bank cards were used for private and household expenses, and that a family vehicle was registered under the corporate’s name. Nonetheless, the corporate was dissolved in 2024. Soon after, Cha Eun-woo’s mother allegedly arrange a brand new agency, D NY LLC, to administer the actor’s assets. As of January 2026, the corporate’s assets remain unused and unfinished, further fueling speculation about tax evasion.
How did Cha Eun-woo reply to the allegations?
In consequence of the tax evasion allegations, several brands quietly removed or canceled their collaborations with the actor. Cha Eun-woo’s company, Fantagio, denied any wrongdoing and said that the corporate, helmed by the actor’s mother, was functioning as intended.
On January 27, 2026, while serving within the military, Cha Eun-woo posted a public apology on social media. The long apology letter expresses the actor’s regret over the findings and said that he’ll take part in any tax investigations as essential and that he’ll take full responsibility.
A final verdict on the matter is yet to be announced. Nonetheless, the case has already caused a dent in Cha Eun-woo’s status. Along with his absence on account of military enlistment and the brand deals shutting down, it stays to be seen how he’ll come back from this.
What’s next for Cha Eun-woo?
While Cha Eun-woo is currently serving within the military, he wrapped up a project before his enlistment. He will probably be seen within the drama The Wonderfools, which is scheduled to premiere on Netflix in 2026. Cha Eun-woo will not be expected to be discharged until January 2027, and hence this drama will function his last on-screen appearance for the near future.
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