Past remarks by Cha Eun-woo, a member of the group ASTRO and an actor who has been embroiled in the largest tax evasion allegations among domestic entertainers, are being exhumed.
Last year the Seoul Regional Tax Service's Investigation Division 4 conducted an intensive probe into Cha Eun-woo over suspicions of tax evasion through a one-person agency established by his mother and notified him of a demand for more than 20 billion won in income tax. Last year Lee Ha-nee and Yoo Yeon-seok were each notified of tax assessments of 6 billion won and 7 billion won, respectively, which drew controversy, but Cha Eun-woo far surpassed them and became embroiled in what could be the largest tax evasion allegation among domestic entertainers.
Cha Eun-woo has carried out activities in a manner where his agency Fantagio and the one-person agency set up by his mother signed service contracts to support his entertainment activities. Income earned by Cha Eun-woo was reportedly distributed among Fantagio, the one-person agency, and Cha Eun-woo himself. The tax authorities regarded the one-person agency set up by his mother as a paper company that did not effectively provide services, and judged that Cha Eun-woo and his mother established a corporation and distributed income to reduce income tax of about 45%, using a scheme that applied a corporate tax rate about 20 percentage points lower than the income tax rate.
Fantagio said the matter centers on whether the corporation established by Cha Eun-woo's mother falls under substantive taxation, that it is not a matter that has been finally determined and notified, and that they will actively explain the issues related to legal interpretation and application through proper procedures. They added that the artist and tax representatives will cooperate faithfully so that the procedures can be concluded quickly.
However, the Seoul Metropolitan Police Agency's Investigation Division 4, nicknamed the 'reaper of the business world,' has moved, and brands that had used Cha Eun-woo as their face have been deleting or making advertisements private one by one, widening the controversy.
At the same time, Cha Eun-woo's past remarks are being exhumed. The most talked-about remark comes from his appearance on tvN's "You Quiz on the Block" in May 2024, where Cha Eun-woo said he dreamed of being not just a "face genius" but an "icon of the era."
Cha Eun-woo, who said he was a school 'insider' who was handsome, did well in studies, served as student council president, and served as captain of both the basketball and soccer clubs, said, I have done many webtoon-based dramas as an actor. Thanks to that I was able to do good works. I tried to plant my colors. I am grateful and pleased whenever I hear compliments about my appearance. Until a few years ago I worried a lot about this part, but the conclusion I reached after worrying was to move forward with persistence. I don't want to do anything halfheartedly. If I keep working hard as I have, I think someone will recognize it someday, saying he dreamed of being an icon of the era.
In particular, this resolve drew attention because it was said in front of Yoo Jae-seok, who has worked for about 30 years without tax controversy. Cha Eun-woo looked at Yoo Jae-seok and said, "Maybe I could be like you, senior," and Yoo Jae-seok joked, "Our paths are different." Two years after the broadcast aired, the program is drawing attention coincidentally as Cha Eun-woo faces tax evasion allegations.
Cha Eun-woo faces the risk of becoming an icon of the era in a dishonorable way. It remains to be seen whether Cha Eun-woo, who says he will actively explain the tax evasion allegations, can resolve the parts he feels are unfair and restore his reputation.
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