Singer and actor Cha Eun-woo (birth name Lee Dong-min) is embroiled in a tax evasion allegation totaling about 20 billion won, and agency Fantagio issued an official statement on the 27th.
Fantagio said, "We sincerely apologize for causing concern to many people over various situations related to Cha Eun-woo," and added, "We feel a heavy sense of responsibility over the controversy that has arisen regarding matters involving the company and our affiliated artist."
It continued, "The matter currently raised is at a stage where the facts are being checked according to the procedures of the tax authorities, and the agency and the artist are faithfully cooperating with the investigation within the necessary scope," and promised, "Once the legal and administrative determinations become clear, we will responsibly take the necessary measures according to the results."
Fantagio also asked, "Regarding claims and suspicions raised in some quarters, please refrain from spreading unverified information and from excessive overinterpretation."
Cha Eun-woo underwent an intensive tax audit by the Seoul Regional Tax Service last year and was notified of an additional income tax assessment exceeding 20 billion won. This is the largest additional tax imposed on an entertainer to date.
The National Tax Service judged that Cha Eun-woo signed a management service contract with company A, which his mother established, and sought to apply the corporate tax rate by dividing the revenue he earned among agency Fantagio, company A, and his personal name.
Regarding this, the agency said, "The main issue in this matter is whether the corporation established by Cha Eun-woo's mother falls under the actual tax subject," and added, "This is not a finalized or notified matter, and we plan to actively explain the issues regarding the interpretation and application of the law through due procedures."
Cha Eun-woo also issued a direct statement through his social media (SNS) on the 26th. "I sincerely apologize for causing concern and disappointment to many people over matters related to me," he said. "As a citizen of the Republic of Korea, I am reflecting deeply on whether my attitude toward fulfilling my tax-paying obligations has been sufficiently strict."
Cha Eun-woo said, "Last year, I reached a point where I could no longer delay enlisting in the military, so I enlisted without completing the tax procedures," and emphasized, "I am currently serving in the military, but there was absolutely no intention to avoid controversy."
He also bowed his head, saying, "I will faithfully comply with the tax-related procedures that follow and will humbly accept the results and fulfill my responsibilities according to the final decision by the relevant authorities," and added, "I will examine myself more strictly going forward and live with a greater sense of responsibility, with a mind to repay the love I have received. I once again sincerely apologize for causing concern."
Cha Eun-woo enlisted in the military band in July last year and is serving on active duty.