Cha Eun-woo’s Mother’s Company Sparks Controversy Amid ₩20 Billion Tax Evasion Allegations — Eel Restaurant Registered as “Managerial Services”

ASTRO member and actor Cha Eun-woo has come under scrutiny over allegations of ₩20 billion (approximately USD 150 million) in tax evasion, with renewed controversy surrounding the nature of a corporation established by his mother.

According to corporate records, Company A, founded by Cha Eun-woo’s mother in October 2022, operates an eel restaurant in Ganghwa Island, which is reportedly run by Cha’s family. However, controversy arose after it was revealed that the company is registered under the standard industrial classification for “managerial services.”

In response, on the 22nd, Cha Eun-woo’s agency Fantagio told Star News,
“Other matters that require verification beyond the official statement we previously provided will be整理ed and announced if and when an additional official position is deemed necessary,” adding, “We will look into why the mother’s company, which operates an eel restaurant, is registered as a managerial services business.”

Meanwhile, a media outlet reported on the same day that Cha Eun-woo was subjected to an intensive tax investigation by the Seoul Regional Tax Office in the first half of last year on suspicion of tax evasion. The allegation claims that despite being represented by an agency, a separate family-run company was established, and service contracts were signed between the two parties to reduce taxes through improper means.

It is alleged that after Cha Eun-woo’s mother, identified as Ms. Choi, established Company A, Fantagio entered into an entertainment activity support services contract with the company. Cha Eun-woo’s income was then reportedly divided among Fantagio, Company A, and Cha Eun-woo himself.

As a result, the National Tax Service reportedly determined that Company A was a “paper company” that did not provide substantive services. Authorities believe that Cha Eun-woo and his mother established the entity to reduce income tax rates—reaching as high as 45%—by redistributing income and instead applying a corporate tax rate more than 20 percentage points lower.

Ultimately, the tax authorities concluded that the profits accrued by Company A effectively returned to Cha Eun-woo, leading to a determination that he had failed to pay over ₩20 billion in income taxes.

However, Cha Eun-woo’s side has countered that Company A is not a paper company, but a properly registered entertainment management business, and has filed a pre-assessment tax appeal challenging the tax authority’s decision. The outcome of this review is still pending.

Fantagio stated,
“This matter centers on whether the corporation established by Cha Eun-woo’s mother qualifies as a substantive taxation entity. It has not yet been finally confirmed or officially assessed. We will actively provide explanations through appropriate legal procedures regarding issues of legal interpretation and application.”

The agency added,
“Cha Eun-woo and his tax representatives will cooperate fully to ensure the process concludes swiftly,” and emphasized, “Cha Eun-woo pledges to continue fulfilling his tax reporting and legal obligations faithfully as a responsible citizen.”


Written by Lee Seung Hun
Translated by Lee So Yun