Singer and actor Cha Eun-woo took personal time off while serving in the military band amid allegations of 20 billion won in tax evasion.

On the 26th, OSEN reported that Cha Eun-woo, serving in the military band as a soldier, took leave earlier this month and then returned to his unit. This leave was the first taken to mark the new year of the Byeong-o zodiac and appears to have been a regular leave given at about 6–7 months after enlistment, not a reward leave.

Regarding this, Cha Eun-woo's agency Fantagio said in an official statement, "It is true that Cha Eun-woo took military leave at the beginning of the year, and he has (now) returned."

The timing of Cha Eun-woo's leave has drawn more attention because the recent controversy over 20 billion won in tax evasion surfaced not long ago.

Earlier, Cha Eun-woo underwent an intensive investigation on tax evasion charges by the Seoul Regional Tax Service's Fourth Investigation Bureau in July last year before enlisting, and he was notified of a tax reassessment exceeding 20 billion won. This is the largest reassessment imposed on an entertainer to date.

Cha Eun-woo took leave after being notified by the tax office of a tax reassessment exceeding 20 billion won, and just two weeks after returning to his unit, a flood of related articles have caused a major impact across not only the entertainment industry but society as a whole.

Fantagio, which said it would "actively clarify the allegations," has otherwise been cautious, saying "it is difficult to confirm anything," and Cha Eun-woo is also not free to speak as he is serving in the military. Nevertheless, because the matter is serious, interest is growing over whether Cha Eun-woo will issue a brief statement through his agency to calm the deteriorating public opinion or post directly on his personal social media to send a message to disappointed fans. Cha Eun-woo has uploaded promotional videos and the like to social media even after enlisting when his solo mini album was released, so he is not restricted from using social media while serving.

Meanwhile, it was reported that Cha Eun-woo recently retained a major law firm to respond to the tax evasion allegations.

It was revealed that Cha Eun-woo has appointed Shin & Kim LLC as his legal representative and will continue legal action against the tax office's notice of a 20 billion won reassessment. Shin & Kim LLC is one of the so-called five major domestic law firms. It recently drew attention for handling the lawsuit related to K-pop group NewJeans' exclusive contract.

A Fantagio representative told OSEN that whether a major law firm had been retained was "unable to confirm." This was effectively taken as an acknowledgment that Cha Eun-woo's side is expected to pursue legal action against the tax office's reassessment.

Meanwhile, the tax office judged that Company A, established by Cha Eun-woo's mother, had signed a service contract with his agency Fantagio but was a paper company that did not provide substantive services. Company A's address was found to be an eel restaurant located on Ganghwa Island, making it rather unsuitable for handling entertainment-related work. It is reported that Cha Eun-woo and his mother are believed to have set up the shell Company A and distributed income to reduce income tax of up to 45%, thereby applying a corporate tax rate more than 20 percentage points lower than the income tax rate as a ruse. In addition, the tax office considered the tax invoices Fantagio received from Company A to be false and imposed about 8.2 billion won in taxes. Cha Eun-woo's side, after being notified of a reassessment exceeding 20 billion won, has objected to the tax office's decision and is awaiting the result of the pre-assessment review.

Cha Eun-woo applied to the Ministry of National Defense's military band in May last year and, after being finally accepted, has been serving since July that year. His scheduled discharge date is Jan. 27, 2027. In addition, the Netflix series Wonderfuls, in which he plays the lead this first half of the year, is scheduled to be released.

[Photo] OSEN DB

[OSEN]

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