Cha Eun Woo, who has been swept up in allegations of tax evasion totaling approximately 20 billion KRW (approx. 13.7 million USD), is now facing growing scrutiny over the timing of his military enlistment.
According to the National Tax Service on January 22, Cha Eun Woo was notified of additional tax payments exceeding 20 billion KRW for allegedly evading income tax through a one-person agency established by his mother. The amount is reportedly among the largest tax reassessments ever imposed on a South Korean celebrity.
Investigators determined that Cha Eun Woo signed a management service contract with the corporation founded by his mother, allowing him to apply a comparatively lower corporate tax rate instead of the higher personal income tax rate. The National Tax Service reportedly believes that Cha Eun Woo’s side deliberately set up a "paper company" to distribute income and avoid the top income tax rate, which can reach as high as 45%.
Amid the controversy, Cha Eun Woo’s military enlistment last July has also come under fire. EDaily reported that the National Tax Service allegedly waited until Cha Eun Woo completed his enlistment process, at the request of his side, before issuing the official tax audit results. This has led some netizens to criticize the move as a so-called “evasive enlistment” intended to sidestep the growing tax scandal.
As the backlash intensified, his agency, Fantagio, responded by stating, “The core issue in this matter is whether the corporation established by Cha Eun Woo’s mother is legitimately subject to taxation. Nothing has been finalized or formally confirmed at this time.” The agency added, “Cha Eun Woo will continue to faithfully fulfill his tax reporting and legal obligations as a citizen.”
SEE ALSO: Civic group to file police complaint over leak of Cha Eun Woo's tax information
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