ASTRO member and actor Cha Eun Woo has issued a statement four days after being embroiled in allegations of 20 billion won in tax evasion, but it appears the move has not prevented brands from distancing themselves.
As of January 26th KST, fashion brand Marithé François Girbaud has switched videos and posts featuring Cha Eun Woo on platforms such as YouTube to private. The videos now display notices such as “This video is unavailable” and “This is a private video,” and can no longer be played. While no official reason for the removal of the videos and images has been disclosed, the action came shortly after the tax-related allegations surfaced, leading to speculation that the decision is connected to the controversy.
Marithé François Girbaud had selected Cha Eun Woo as a model in March last year. The brand had earlier stated to a media outlet that there were no plans to delete or alter photos and videos featuring Cha Eun Woo on social media and YouTube. However, less than five hours later, the related advertisements were set to private, effectively signaling a withdrawal.
Cha Eun Woo is reportedly facing a notice of additional income tax assessment exceeding 20 billion won. Last year, the Investigation Bureau 4 of the Seoul Regional Tax Office conducted a high-intensity probe into allegations that taxes were evaded through a one-person agency established by his mother.
According to reports, Cha Eun Woo had been operating under a service contract between his agency Fantagio and the one-person agency founded by his mother, with income distributed among Fantagio, the one-person agency, and Cha Eun Woo. The tax authorities reportedly viewed the one-person agency as a paper company that did not provide substantial services. They concluded that a corporation was established to reduce income tax—reportedly as high as 45 percent—by distributing earnings and applying a corporate tax rate roughly 20 percentage points lower than the personal income tax rate.
Cha Eun Woo’s side stated, “The key issue in this matter is whether the corporation established by Cha Eun Woo’s mother qualifies as a subject of substantive taxation. This has not yet been finalized or formally assessed. We plan to actively provide explanations through proper procedures regarding issues related to legal interpretation and application. The artist and his tax representatives will faithfully cooperate to ensure the procedures conclude promptly.”
On January 26th, four days after the allegations surfaced, Cha Eun Woo also shared a message via social media, saying, “I sincerely bow my head in apology for causing concern and disappointment to many people due to various issues related to me recently.” He added, “I will faithfully comply with the tax-related procedures going forward. I will also humbly accept the final decision made by the relevant authorities and take responsibility accordingly.”
Meanwhile, following the emergence of the tax evasion allegations, skincare brand Abib and Shinhan Bank also reportedly switched related advertisements and posts to private.
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