One major scandal that many celebrities try to avoid is accusations of tax evasion. However, ASTRO member Cha Eun Woo (차은우) recently found himself facing allegations of evading tax of more than KRW20 billion (approximately RM55 million).
According to reports from 22nd January 2026 (Thursday), the Seoul Regional Tax Office had conducted an intensive tax audit over Cha Eun Woo’s earnings in the first half of 2025. The Tax Office suspected that the singer had set up a “paper company” with his mother. They later signed a service contract with his agency, Fantagio, to apply a lower corporate tax of 20%, instead of the 45% private income tax, on his earnings.
The government and the South Korean National Tax Service have been cracking down on “paper companies” recently, after reports that many celebrity-established one-man agencies don’t provide actual management services. Instead, celebrities set up these agencies to reduce their private income tax. The Tax Office is currently investigating the distribution of Cha Eun Woo’s earnings through three channels: Fantagio, his agency and the idol himself.
Fantagio has issued an official statement on the issue, denying the claims. The agency clarified, “The key issue in this matter is whether the corporation established by Cha Eunwoo’s mother qualifies as a substantive taxpayer. At this time, this case has not been formally confirmed or notified, and we plan to provide active explanations in accordance with proper legal procedures regarding the interpretation and application of the relevant laws.”
The label also notes that Cha Eun Woo and his tax representatives will fully cooperate to complete the necessary procedures, and the idol will continue to fulfil his tax reporting diligently. Meanwhile, Cha Eunwoo’s representative insists the Tax Office’s ruling is unjust, arguing that his company is a legally registered management agency. His team has also formally requested a review of the decision through the pre-assessment process.
As of now, the case is still under investigation. Whatever happens, we hope things work out for Cha Eun Woo and Fantagio. What are your thoughts on this?
