Cutting ties in the advertising industry has begun over Cha Eunwoo, a member of the group ASTRO and actor, who is accused of 20 billion won in tax evasion.
On the 22nd, OSEN confirmed that skincare brand Abib changed Cha Eunwoo's videos published on its YouTube channel and other platforms to private. The videos cannot be played and display messages saying "This video cannot be played" and "This is a private video."
Abib also deleted posts on X (formerly Twitter) that had announced Cha Eunwoo as an ambassador. However, the ambassador photos on its official website were not removed. The reason the videos and photos were deleted has not been disclosed, but the timing after allegations of tax evasion against Cha Eunwoo is significant.
Abib said last year that it had chosen Cha Eunwoo as its new ambassador. At the time, Abib explained, "Cha Eunwoo receives much love for his distinctive image and sophisticated charm, which align with the brand values Abib pursues." A brand official said, "We judged that Cha Eunwoo's transparent and clean image best expresses the brand's philosophy of 'emptied and filled perfection,' so we decided to appoint him as a global ambassador."
Cha Eunwoo is reported to have been notified of an additional income tax assessment exceeding 20 billion won. Last year, the Seoul Regional Tax Service's Investigation Division 4 conducted a high-intensity investigation into allegations of tax evasion through a one-person agency established by his mother and notified him of an additional income tax assessment exceeding 20 billion won. An additional income tax assessment exceeding 20 billion won is the largest amount of tax ever levied on an entertainer.
Cha Eunwoo has worked by having his agency Fantagio and the one-person agency set up by his mother enter into a service contract for supporting his entertainment activities. It is reported that the income Cha Eunwoo earned was divided among Fantagio, the one-person agency, and Cha Eunwoo 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 tax authority judged that Cha Eunwoo and his mother set up a corporation and distributed income to reduce income tax by as much as 45%, using a trick that applied a corporate tax rate 20 percentage points lower than the personal income tax rate.
In response, Fantagio said, "The main issue in this matter is whether the corporation established by Cha Eunwoo's mother is subject to substantive taxation, and this is not a matter that has been finally confirmed and notified. We will actively explain the issues related to legal interpretation and application through proper procedures. The artist and his tax representatives will faithfully cooperate so that the procedures can be completed promptly."
[OSEN]