ASTRO (아스트로) member and actor Cha Eun Woo (차은우) has built a reputable career for himself with multiple brand endorsements, drama appearances and even international tours. However, now that he’s serving in the military, insiders say that his agency is getting the biggest hit.
Earlier this week, Chosun Biz reported that Cha Eun Woo’s agency, Fantagio, is “staggering under financial strain”. According to the report, the company is now burdened with fines due in October following a tax investigation from the Seoul Regional Tax Office. Additionally, Fantagio is due to pay back KRW13 billion (approximately RM39.2 million) in bonds, as its seventh round of convertible bonds matures.
In short, the company now requires more funds in October and November than it currently has. Industry sources speculate that this financial strain is caused by Fantagio being overly reliant on certain intellectual properties (IP). Unfortunately, it is barely sustaining itself through financial assistance from affiliates. There are also allegations that Fantagio was relying too heavily on only one of its stars: Cha Eun Woo.
According to the agency’s securities filings, one single artist accounted for more than half of the company’s total revenues for the third quarter of 2023 (July to September). While the filling never revealed the source of this revenue, many believed this artist to be Cha Eun Woo. In that year, the idol had appeared in several projects and was appointed brand ambassador for Skechers, Subway and Ricola.
With Cha Eun Woo’s enlistment last month, Chosun Biz argued that Fantagio has lost its key moneymaker, which makes the decline in company revenue inevitable. While the agency has pitched a K-drama business as a “post-Cha Eun Woo” growth strategy, the attempt seemingly failed. As of now, Fantagio is entering its third consecutive year of operating losses and fourth straight year of net losses.
In response to this, Fantagio argued that the company is not facing a liquidity crisis and that it’s currently in discussions about its finances. What are your thoughts on this? Do you also think the company isn’t doing well without Cha Eun Woo?
Source: Chosun Biz
