Cha Eun-woo, a member of ASTRO and an actor embroiled in allegations of 20 billion won in tax evasion, issued a statement after four days, but it could not prevent advertisers from severing ties.
On the 26th, OSEN confirmed that fashion brand Marithé François Girbaud changed Cha Eun-woo's videos and posts 공개 on its YouTube channel and other platforms to private. The videos show messages saying 'Unable to play video' and 'This is a private video' and cannot be played, and although the reason why the videos and photos were deleted was not disclosed, the fact that the action was taken immediately after Cha Eun-woo faced tax evasion allegations suggests it was a consequence of that.
Marithé François Girbaud selected Cha Eun-woo as a model in March last year. Marithé François Girbaud told one outlet that there had been no deletions or special changes to photos and videos of Cha Eun-woo posted on social media and YouTube, but less than five hours later it immediately switched Cha Eun-woo–related advertisements to private, choosing to cut ties.
Cha Eun-woo is reported to have been notified of an income tax reassessment exceeding 20 billion won. Last year, the Seoul Regional Tax Service's Investigation Division 4 conducted an intensive investigation into Cha Eun-woo on suspicions of tax evasion through a one-person agency established by his mother.
Cha Eun-woo had been working under an arrangement in which his agency, Fantagio, and the one-person agency founded by his mother signed a service contract to support his entertainment activities, and the income Cha Eun-woo earned was reportedly shared among Fantagio, the one-person agency and Cha Eun-woo himself. The National Tax Service viewed the one-person agency founded by Cha Eun-woo's mother as a paper company that did not actually provide services. It judged that Cha Eun-woo and his mother set up a corporation and distributed income to reduce income tax by up to 45%, using a scheme that applied a corporate tax rate 20 percentage points lower than the income tax rate.
Cha Eun-woo's side said, "The main issue in this matter is whether the corporation established by Cha Eun-woo's mother falls under substantive taxation, and this is not a matter that has been finally confirmed or notified. We will actively explain the issues related to the interpretation and application of the law through proper procedures. The artist and the tax representative will faithfully cooperate so that the procedures can be completed promptly."
Also, on the 26th, four days after tax evasion allegations were raised, Cha Eun-woo posted on his social accounts, "I sincerely bow my head and apologize for causing worry and disappointment to many people because of recent matters related to me," and added, "I will faithfully participate in the subsequent tax procedures. I will humbly accept the final judgment made by the relevant authorities and take responsibility accordingly."
Meanwhile, after allegations that Cha Eun-woo evaded 20 billion won in taxes surfaced, skincare brand Abib and Shinhan Bank changed their advertisements and posts to private.
[OSEN]