Cha Eun-woo·LG Uplus end advertising model contract…'contract expiration' but watchers alert to fallout of controversy
Actor and singer Cha Eun-woo and LG Uplus have ended their advertising model contract.
According to industry sources on the 6th, the advertising model contract between LG Uplus and Cha Eun-woo was recently concluded. Cha Eun-woo was selected as the representative model for the LG Uplus AX strategic campaign and had been active since 2024.
LG Uplus has maintained the position that this contract termination was a "procedure due to contract expiration." It was also reported that the company said, "At present, we have no plans to discuss or pursue a renewal."
However, because the timing coincided with tax controversy surrounding Cha Eun-woo, various interpretations have emerged inside and outside the industry. Earlier, Cha Eun-woo was embroiled in allegations that the National Tax Service had notified him of a tax assessment exceeding 20 billion won for income tax and other taxes. The allegation is that, despite having an original agency, income was distributed and tax rates lowered by signing a service contract with a separate corporation established by his mother.
The company in question, Company A, was founded by Cha Eun-woo's mother, Ms. Choi, and had signed a support service contract with Fantagio for Cha Eun-woo's entertainment activities and shared revenue, but the National Tax Service reportedly judged it to be a paper company without substantive service provision. Accordingly, the National Tax Service concluded that instead of high-rate income tax, the company benefited from a comparatively lower corporate tax rate.
In particular, Cha Eun-woo received an intensive tax investigation from the Seoul Regional Tax Service's Investigation Division 4 before enlistment, and the National Tax Service reportedly notified the investigation results after enlistment at Cha Eun-woo's request. Cha Eun-woo passed the army military band in May last year, enlisted in July and is currently serving. In the process, some raised suspicions that the enlistment was "an escape to avoid controversy."
In response, Cha Eun-woo's side argued that Company A is not a paper company but a business officially registered as an entertainment planning service. They have currently filed a tax objection review to challenge the appropriateness of the National Tax Service's decision, and Fantagio also said it would actively explain its position, stating, "This is not a matter finally confirmed and notified, and the interpretation and application of the law are the issues."
Cha Eun-woo himself issued a statement four days after the controversy erupted, saying, "My military enlistment was not a choice to avoid controversy," and apologizing, "I will faithfully participate in subsequent tax-related procedures and fulfill my responsibilities according to the final judgment."
Nevertheless, the advertising world's 'cutting ties' continues. Skincare brand Abib, Shinhan Bank, MAISON MARIEE FRANCOIS VOYER, Daesung MyMac, SSG.com and others have set Cha Eun-woo–related advertising content to private. The Ministry of National Defense also switched to private a video featuring Cha Eun-woo that was uploaded to the Defense Media Agency's YouTube channel "KFN Plus."
[Photo] OSEN DB
[OSEN]