Key takeaways

  • Cha Eun-woo is under investigation for alleged tax evasion tied to a one-person agency linked to his mother.
  • Seoul Regional National Tax Service’s special unit issued a notice seeking over ₩20 billion in additional taxes.
  • Major brands temporarily pulled or hid ads, but widespread campaign cancellations have not surged.
  • Cha Eun-woo’s agency says the matter hinges on whether the company qualifies as a substantive taxable entity.

What the probe alleges

The Seoul Regional National Tax Service’s Investigation Division 4 — a special unit often deployed for high-profile tax cases — has flagged Cha Eun-woo in a probe that could result in more than ₩20 billion (about $16–17 million) in additional income tax assessments.

Authorities examined payments routed through a one-person agency established by Cha Eun-woo’s mother. Investigators suspect the firm functioned as a paper company used to shift income and lower tax rates, rather than providing real services. The tax office says the arrangement appears designed to convert higher individual income tax liabilities into corporate income taxed at a lower rate.

How earnings were reported

According to reports, Cha Eun-woo’s earnings were divided among his agency, Fantasio, the one-person agency, and the artist himself under a support service contract. Investigators questioned whether the one-person agency performed substantive planning or production work to justify those payments.

Brand and industry reaction

Brands reacted quickly after the allegations surfaced. Skincare brand Abbive made videos and posts featuring Cha Eun-woo private within hours, and Shinhan Bank removed his image from materials. Other fashion labels, including Chaumet, Maison Margiela and The North Face, said they are monitoring the situation.

Despite early caution, the feared domino effect of mass campaign cancellations has not occurred. Education company Daesung MyMac and some fashion partners continue to use existing banners and materials while brands weigh next steps.

Cha Eun-woo’s response and legal stance

Fantasio, Cha Eun-woo and his tax representatives say the core issue is whether the company set up by his mother qualifies as a substantive taxation target. They deny any final determination has been made and say they will cooperate and provide legal explanations through proper procedures.

Investigators have not formally concluded whether the case represents intentional tax evasion or an accounting irregularity. The involvement of Investigation Division 4 signals the tax authority views the allegations seriously.

What’s next

Tax investigators will complete their review and issue formal notices if they confirm additional liabilities. Cha Eun-woo’s legal team has said it will actively respond. The advertising industry will likely continue cautious monitoring as decisions by major brands could shift if Seoul tax authorities announce definitive findings.

Cha Eun-woo is currently serving in the military, having enlisted last year. The case remains unresolved pending further official notifications.

Cha Eun-woo

Image Referance: https://www.chosun.com/english/kpop-culture-en/2026/01/24/S4LY7PIZ35EMLNQER3H2ZRNBZE/