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Cha Eun-woo Pays Record 20 Billion Won Tax Penalty and Issues Final Apology
3 months ago•Anna Hwang
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ASTRO member and actor Cha Eun-woo has issued a second apology from military service after paying over 20 billion won (~$15.3M USD) in back taxes following a high-intensity audit into organized tax evasion. While the actor expressed regret and took responsibility, his agency, Fantagio, admitted to management failures and pledged internal reforms.
Summary
| Event | Detail |
|---|---|
| Core Issue | Allegations of intentional tax evasion via a paper company. |
| Penalty Amount | Over 20 billion won (~$15.3M USD). |
| Current Status | Taxes paid in full as of April 2026. |
| Legal Action | Retained Sejong law firm to represent him against the National Tax Service. |
| Industry Impact | Advertisers and the Ministry of Defense have removed his image and private content. |
Key Facts
- Experts suspect intentional evasion after Cha Eun-woo’s personal corporation was registered at an eel restaurant in Ganghwa-do and converted to a Limited Liability Company (LLC) to avoid external audits.
- The National Tax Service found the actor and his mother used "The Annie," a paper company, to benefit from corporate tax rates (10–20%) rather than personal income tax rates (up to 45%).
- Under the Act on the Aggravated Punishment of Specific Crimes, the 20 billion won (~$15.3M USD) evasion could have resulted in life imprisonment or a minimum five-year term.
- Cha Eun-woo clarified that his enlistment was due to legal limits on delaying service, not an attempt to flee the investigation.
- In his final apology, he stated: "I respect the procedures and results of the National Tax Service, and I have paid all related taxes so that no further confusion continues."
- Fantagio is implementing stronger tax and legal verification processes to prevent future management failures.
Key Terms
- The Annie: A paper company allegedly used by Cha Eun-woo and his mother to reduce their tax burden.
- Sejong: One of South Korea’s top three law firms representing the actor against the National Tax Service’s Investigation Bureau 4.
- Investigation Bureau 4: The specialized National Tax Service unit known for high-intensity audits.
Key Quote
"Thanks to the unconditional love you've sent me over the long span of 11 years, I was able to be in this undeserved position. Therefore, I am even more sorry for causing such great hurt." — Cha Eun-woo
Next
- Monitoring for the potential resumption of advertising campaigns following the tax settlement.
- Observing Fantagio’s internal management restructuring and new legal verification steps.