Cha Eun-woo Faces Tax Evasion Allegations, Investigation Underway
South Korean singer and actor Cha Eun-woo of the group ASTRO is under investigation for alleged tax evasion amounting to 20 billion won (approximately $14.7 million USD as of March 8, 2026), according to reports from South Korean media outlet Star News Korea and GMA Network. The allegations center around the use of a single-person agency corporation allegedly linked to his mother’s business.
Allegations Detail Potential Tax Avoidance Scheme
The investigation, highlighted on the MBC program “Straight,” suggests that Cha Eun-woo may have utilized a corporation in his mother’s name to reduce his tax burden. According to lawyer and accountant Kim Myung-kyu, as reported by Star News Korea, the National Tax Service (NTS) believes there is evidence of “active tax evasion,” not merely accounting errors.
The report details that income settled through a personal agency is subject to a tax rate of up to 49.5%, including local taxes. However, settling income as a single-person company reduces the tax rate to approximately 27.5%. With Cha Eun-woo’s annual profits estimated in the tens of billions of won, this difference could result in significant tax savings.
Real Estate Purchases and Corporate Structure Under Scrutiny
The NTS investigation reportedly uncovered real estate purchases made by Cha Eun-woo’s corporation, including a building, land and forest land encompassing approximately 4,500 pyeong (roughly 14,828 square meters) including a charcoal eel restaurant operated by his mother. These purchases, totaling 2.8 billion won initially and later expanding to 1.1 billion won for additional land, have raised questions about the corporation’s activities as an entertainment agency, as noted by Star News Korea.
The corporation’s structure also drew attention, with Cha Eun-woo’s mother listed as the CEO, Cha Eun-woo and his younger brother as executive directors, and his father as an auditor. The address of the corporation is reportedly the same as the eel restaurant.
Cha Eun-woo’s Response and Current Status
Currently serving in the military, Cha Eun-woo addressed the controversy on his social media, expressing remorse and stating he was reflecting on his approach to tax obligations as a citizen of South Korea, according to GMA Network. He has also reportedly retained a large law firm to request a “pre-tax adequacy review.”
Background on Cha Eun-woo
Cha Eun-woo is a member of the South Korean boy band ASTRO and has gained recognition as an actor in various dramas. He enlisted in the South Korean military on July 28, 2025, as reported by AsianWiki.