Cha Eun Woo, one of South Korea’s most prominent entertainers, broke his silence on January 26 regarding allegations that he owes more than 20 bn won ($14 mln) in additional income taxes. The 28-year-old actor and singer, currently serving mandatory military service, posted a formal apology on social media.
“I will humbly accept the final judgment made by the relevant authorities and take full responsibility in accordance with the outcome,” Cha wrote. He added he was “deeply sorry” and pledged to “comply faithfully with all tax-related procedures going forward.”
“I sincerely bow my head and apologise for causing concern and disappointment to many people… I deeply feel the responsibility for this misunderstanding, which also stemmed from my own shortcomings… I will faithfully participate in the tax-related procedures that will follow,” Cha Eun Woo wrote.
Background of the Investigation
The controversy emerged as part of a broader probe into Cha’s agency Fantagio, which was ordered in August 2025 to pay 8.2 bn won in additional taxes. Officials reportedly discovered the alleged tax irregularities linked to Cha through his mother’s company while reviewing Fantagio’s finances.
The case represents one of the highest-profile tax investigations involving a Korean celebrity in recent years. The alleged 20 bn won tax shortfall has drawn attention both domestically and internationally.
Commercial Consequences
Following the allegations, major brands have begun distancing themselves from Cha. Companies including Shinhan Bank and cosmetics firm Abib have reportedly pulled advertising campaigns featuring the actor. The Korea Herald noted that “the advertising industry has begun distancing itself from the star,” highlighting the potential commercial impact given Cha’s extensive endorsement portfolio, which includes luxury fashion houses, consumer brands, and financial institutions.
Next Steps
Cha Eun-woo is scheduled to complete his military service in January 2027. His personal apology marks his first direct comment on the allegations since Fantagio’s initial statement on January 22, which said the matter had not been “finally confirmed or officially notified.”
No criminal charges have been filed, and the National Tax Service has yet to issue a final determination. Cha has formally objected to the tax assessment and committed to full cooperation with the investigation.
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