Ganghwa County will conduct an on-site inspection of a corporation in Ganghwa County, Incheon, run by singer-actor Cha Eun-woo's mother, who faces allegations of tax evasion.
On the 26th, Ganghwa County said it plans to carry out an on-site inspection of Corporation B in Bureun-myeon, where Cha Eun-woo's mother, identified as A, serves as CEO. The inspection was prompted after a civil complaint was filed with the Anti-Corruption & Civil Rights Commission's e-People system, saying a comprehensive review was needed regarding Corporation B's registration for the pop culture and arts planning business.
Based on the complaint, Ganghwa County plans to visit the corporation's registered address to check the building's operational status and other details. However, it said Corporation B has been registered for the pop culture and arts planning business since Dec. 2022 and that it is not currently reviewing any administrative disposition. A Ganghwa County official said, "There were no issues with the business registration, and if necessary, we will guide them on changing the registration."
Earlier, Cha Eun-woo was embroiled in a tax evasion controversy after receiving a notice from the National Tax Service to pay more than 20 billion won in additional income tax. He is suspected of signing a management service contract with a corporation established by his mother and benefiting from a lower corporate tax rate than the individual income tax rate.
Fantagio said, "The key issue in this matter is whether the corporation established by Cha Eun-woo's mother falls under the scope of substantive taxation," adding, "Nothing has been finalized or officially notified at this time."