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The Cha Eun-woo has issued an official statement in response to the artist's recent accusations of tax evasion. The information, revealed on January 22, quickly attracted attention due to the amounts involved and the sensitive context surrounding the case.
A high-stakes tax investigation
According to several media reports, Cha Eun-woo was investigated last year by the No. 4 Investigation Office of the Seoul Regional Tax Administration. The administration reportedly notified him of a tax reassessment exceeding 20 billion won, on income tax and other taxes.
At the heart of the dispute was the structure of his income. Although already under contract with his agency, the artist would also have received income via a separate company, set up by his mother, with which a service contract would have been concluded. The tax authorities suspect that this company did not carry out any real activity, but was used to divide income between several entities in order to reduce the overall tax burden.
On this basis, the tax authorities considered that the company in question belonged to a so-called «shell» structure, and concluded that it had failed to pay a substantial amount of tax.
Fantagio disputes and calls for clarification
Faced with these accusations, the Fantagio was keen to qualify the situation. In its press release, it stated: «The crux of this case is to determine whether the company established by Cha Eun-woo's mother can be considered an entity subject to substantial taxation. At this stage, nothing has been definitively confirmed or officially notified, and we intend to actively clarify the facts within the framework of the legal procedures.»
The agency also assured that the artist would cooperate fully with the tax authorities: «In order to conclude the process as quickly as possible, the artist and his tax representative will cooperate diligently. Cha Eun-woo will continue, as a citizen, to scrupulously respect his legal and fiscal obligations.»
Cha Eun-woo has been performing his military service with the South Korean Army Band since last July. His release date is scheduled January 27, 2027. The case remains open, pending official clarification from the tax authorities.
