Advertising circles are increasingly distancing themselves from ASTRO member and actor Cha Eun-woo, who is suspected of tax evasion involving around 20 billion won. Following beauty, finance, fashion and education, even affiliates of major conglomerates have chosen to cut ties, suggesting the seriousness of the matter.
On the 27th, OSEN confirmed that SSG.com switched to private the videos and other content featuring Cha Eun-woo, whom it selected last year as an exclusive beauty model, on its YouTube channel. The reason for the switch to private was not disclosed, but since the move came after allegations of tax evasion involving around 20 billion won surfaced, it can be assumed to be an aftereffect.
This is not the first time advertisements for Cha Eun-woo, who is under suspicion of tax evasion, have been cut. Skincare brand Abib switched Cha Eun-woo's promotional videos and posts to private, and afterward Shinhan Bank, Marithe Francois Girbaud, Daesung Myungmac and others in finance, fashion and education took similar measures. In particular, even after Cha Eun-woo and his agency Fantagio released a statement, SSG.com made its ads private, and the Ministry of National Defense, where Cha Eun-woo is currently serving, also made private the content on the Defense Media Agency's YouTube channel KFN Plus in which Cha Eun-woo appeared as a storyteller.
Last year, the Seoul Regional Tax Service's Investigation Division 4 conducted a high-intensity probe into Cha Eun-woo over allegations of tax evasion through a one-person agency established by his mother. It is reported that Cha Eun-woo, his agency Fantagio and the one-person agency set up by his mother divided income evenly by signing an entertainment activity support service contract.
However, the tax office viewed the one-person agency established by Cha Eun-woo's mother as a paper company that did not actually provide services. The tax office judged that Cha Eun-woo and his mother set up a corporation and distributed income to reduce income tax of up to 45%, using a trick that applied a corporate tax rate 20 percentage points lower than the income tax rate.
Cha Eun-woo's side said, "This matter centers 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 confirmed and notified. We will actively explain the issues related to legal interpretation and application through proper procedures. The artist and the tax representative will faithfully cooperate so that the procedures can be concluded promptly."
Four days after the controversy, on the 26th, Cha Eun-woo said, "I sincerely bow my head and apologize for causing concern and disappointment to many people because of various recent matters related to me. Through this incident, as a citizen of Korea, I am reflecting deeply on whether my attitude toward the duty to pay taxes has been sufficiently strict." Fantagio also said, "We will use this incident as an opportunity to once again review our artist management system, supplement and strengthen necessary systems, and do our best to prevent similar controversies from recurring," offering an additional statement.
In particular, on the 27th Fantagio again released a statement saying, "The current issue is at a stage where facts are being verified according to tax authorities' procedures, and the agency and the artist are faithfully participating in the investigation within the necessary scope. If legal and administrative judgments become clear in the future, we will responsibly implement necessary measures according to the results. We earnestly request that people refrain from reckless speculation, the spread of unverified information and excessive overinterpretation regarding the claims and suspicions raised by some."
[OSEN]