The Seoul Regional Tax Service's fourth investigation division, nicknamed the corporate grim reaper, has zeroed in on ASTRO member and actor Cha Eun-woo. Cha Eun-woo, now bearing the dishonor of the largest tax evasion amount ever recorded for an entertainer, has effectively walked away from the bright future that lay ahead of him.
In 2025 the Seoul Regional Tax Service's fourth investigation division conducted an intensive probe into Cha Eun-woo on suspicion of tax evasion through a one-person agency established by his mother, and notified him of an income tax bill exceeding 200 billion won. An income tax bill exceeding 200 billion won is reported to be the largest amount ever levied against an entertainer.
Cha Eun-woo carried out activities under contracts in which his agency Fantagio and the one-person agency set up by his mother provided entertainment activity support services. It is reported that the income Cha Eun-woo earned was evenly divided among Fantagio, the one-person agency and Cha Eun-woo himself.
However, the tax authority viewed the one-person agency established by his mother as a paper company that did not actually provide services. The Seoul Regional Tax Service judged that Cha Eun-woo and his mother set up a corporation and allocated income to reduce the income tax that could reach 45%, using a scheme that applied a corporate tax rate 20 percentage points lower than the income tax rate.
It is especially notable that the organization targeting Cha Eun-woo is none other than the Seoul Regional Tax Service's fourth investigation division. Known as the special tax audit unit deployed when tips of tax evasion or allegations of slush fund creation are detected rather than during routine tax audits, the Seoul Regional Tax Service's fourth investigation division handles cases involving large corporations, high earners, figures connected to politics and industry, and major tax evasion incidents, earning the nickname the corporate grim reaper. The nickname stems from the fear that being audited by this unit could lead to massive reassessments that might threaten one's livelihood.
Therefore, being investigated by the Seoul Regional Tax Service's fourth investigation division is often interpreted as indicating not a simple accounting error but serious allegations such as deliberate tax evasion or embezzlement. Recently the division launched probes into Coupang and Coupang Fulfillment Service on alleged offshore tax evasion, and Hyundai Engineering & Construction on alleged accounting fraud and slush fund creation, and it has uncovered slush fund creation or illicit inheritance and gift schemes involving the families of conglomerate owners such as former T. K. Corporation chairman Park Yeon-cha, Chung Mong-koo, honorary chairman of Hyundai Motor Group, Lee Jay-hyun, chairman of CJ Group, former Terraform Labs co-founder Shin Hyun-seong, and Fantagio chairman Namgoong-gyeon.
High-earning entertainers have also appeared on the Seoul Regional Tax Service's fourth investigation division's list. The division has conducted intensive tax audits of Yu Jae-seok, Kim Tae-hee, Lee Byung-hun and Kwon Sang-woo, and this time its blade has been aimed at Cha Eun-woo. It views that they evaded taxes by dispersing income through agencies established by Cha Eun-woo's mother and others, and notified of an income tax reassessment that is the largest in the history of entertainers.
Cha Eun-woo, who debuted in 2016 as a member of the group ASTRO and earned great affection by balancing activities as a singer and actor, once reigned on another level to the extent he had the nickname "choichoicha" (the favorite is the favorite Cha Eun-woo is Cha Eun-woo), but he suffered a severe blow to his morality after receiving the largest reassessment ever for an entertainer. In particular, suspicions that he fled to the military to avoid tax evasion surfaced, causing Cha Eun-woo's image to plummet.
Meanwhile, regarding the tax evasion allegations, Fantagio said, "This matter hinges on whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation, and it is not a matter that has been finally determined or notified; we will actively provide explanations through lawful procedures regarding disputes over legal interpretation and application. To ensure the procedure is completed promptly, the artist and tax representatives will cooperate faithfully."
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