On 22nd, South Korean outlet Edaily reported that the National Tax Service (NTS) conducted an intensive audit last year and notified Cha of more than 20 billion won in additional taxes. The figure would rank among the largest tax assessments involving a Korean celebrity. According to the report, Cha has challenged the decision and requested a pre-assessment review.
Per Edaily, authorities are scrutinizing whether a one-person agency established by Cha’s mother―referred to as “Company A”―provided actual services. Cha has been working under his label Fantagio while Company A held a support-services contract, with income reportedly split among Fantagio, Company A, and Cha. Investigators are said to suspect Company A functioned as a shell entity to reduce Cha’s personal income tax liability by applying lower corporate tax rates, and they reportedly summoned both Cha and his mother during the probe. The outlet reports that tax officials concluded Cha underpaid more than 20 billion won in income taxes; however, the assessment is being contested and has not been finalized.
Fantagio responded, saying the central question is whether the company founded by Cha’s mother is the proper subject of taxation. “This matter has not been finalized or officially imposed,” the agency said, adding that it plans to actively explain its position through the appropriate legal process regarding the interpretation and application of tax law.
The label also noted that Cha and his tax representatives will fully cooperate to bring the matter to a prompt resolution, and emphasized that Cha will continue to fulfill his tax filing and legal obligations as a citizen.
Cha Eun-woo enlisted in July 2025 and is currently serving in the South Korean Army band.
(SBS Entertainment News | Kang Sun-ae)