On January 22, 2026, Ok-media E Each day reported that ASTRO star Cha Eun-woo is allegedly locked in a tax dispute with South Korea’s Nationwide Tax Service. Authorities notified him of extra taxes exceeding ₩20.0 billion KRW. That equals roughly $13.7 million USD. The determine consists of unpaid revenue tax, and officers describe it as one of many largest superstar tax assessments ever issued.
The choice follows an in depth tax audit carried out earlier than his navy enlistment final July. Quickly after receiving the discover, the Ok-pop idol filed a proper objection. He’s now ready for the end result of a pre-assessment assessment. On the core of the investigation is “one-man businesses” tied to his earnings. Tax officers imagine the construction was in place to scale back private tax publicity.
Investigators found that an organization based by Cha Eun-woo’s mom sat between him and Fantagio. The corporate reportedly signed a service settlement with that firm. The deal coated help linked to his leisure actions. From that second, earnings have been break up 3 ways. Parts went to Fantagio, the family-run agency, and Cha Eun-woo personally.
The Nationwide Tax Service rejected the corporate’s position as authentic. Officers labeled it a paper entity, concluding that it carried out no actual enterprise features. Their findings instructed the construction decreased taxes by shifting revenue away from excessive private charges. Company taxes are over 20 proportion factors decrease.
“Company A’s handle was positioned in a spot in Ganghwa Island that doesn’t appear applicable for an entertainment-related enterprise, and it can’t be thought-about an workplace both. There may be speak that they drove a number of overseas vehicles in Company A’s title and processed varied bills, however didn’t present any providers that have been completely different from these supplied by Fantagio,” a tax trade insider acknowledged.
As a result of the corporate was dismissed as invalid, penalties unfold to Fantagio. In August final 12 months, the company was hit with ₩8.20 billion KRW in further taxes. That quantity equals about $5.60 million USD. The Seoul Regional Tax Workplace imposed the penalty after additional assessment. Tax authorities acknowledged that Fantagio processed false invoices issued by the mom’s firm. Extra prices included value-added tax. Fantagio submitted a pre-assessment objection. Nonetheless, officers upheld the unique ruling.
Each Cha Eun-woo and his mom have been summoned for questioning. Investigators decided that income from the corporate finally returned to him. Primarily based on this conclusion, authorities claimed over ₩20.0 billion KRW in unpaid revenue tax. At his request, officers waited till navy enlistment concluded earlier than issuing ultimate outcomes. Nonetheless, his representatives strongly deny the allegations, insisting the ruling misrepresents the corporate’s goal.
“Fantagio’s CEO modified a number of instances, and out of concern for her son’s leisure profession, his mom established the corporate and immediately operated the administration enterprise out of a need to guard him. This isn’t a paper firm with no substance, however an formally registered in style tradition and humanities planning firm,” Cha’s facet argued.
Fantagio clarifies ongoing tax assessment involving Cha Eun-woo
Fantagio addressed the tax controversy involving ASTRO’s Cha Eun-woo on January 22, 2026. The company launched an official response following reviews a couple of current tax audit.
“At the moment, this case has not been formally confirmed or notified, and we plan to offer energetic explanations in accordance with correct authorized procedures concerning the interpretation and software of the related legal guidelines,” the company asserted.
Fantagio acknowledged it’ll actively current explanations by way of correct authorized procedures. These explanations will deal with how tax legal guidelines are interpreted and utilized. In the meantime, efforts are being made to resolve the state of affairs shortly.
“To make sure that the required procedures are accomplished promptly, the artist and his tax representatives will absolutely and faithfully cooperate. Cha Eun-woo assures that he’ll proceed to diligently fulfill his tax reporting and authorized obligations as a accountable citizen,” Fantagio concluded.
If the pre-assessment assessment succeeds, the tax invoice might be canceled. If rejected, fee might be required, and authorized challenges can nonetheless comply with.
Edited by Shreya Jha
