This article is part of our coverage of Cha Eunwoo’s Tax Evasion Scandal. You can read more and view the entire timeline here.
ASTRO member and actor Cha Eunwoo, embroiled in a ₩20.0 billion KRW (about $13.8 million USD) tax evasion suspicion, has hired Sejong, one of the top three law firms in Korea, gearing up for a direct confrontation with the National Tax Service. Some in the legal community believe that if Cha Eunwoo’s side takes the case to court, there is a possibility of winning.
On the 28th, Roel Law Firm posted a video titled Cha Eun Woo’s 20 Billion Won Tax Evasion Suspicion and the Reason Why the Investigation Division 4 is Involved, This is Not a Matter to Overlook through its official channel.
In the video, lawyer Lee Tae Ho explained, “Sometimes the National Tax Service interprets laws in favor of the state and imposes excessive taxes.” He added, “They first impose heavy additional taxes and then dispute the matter in court afterward.”
He continued, “Recently, large law firms have often won lawsuits against the National Tax Service,” and added, “Since the possibility of excessive taxation by the tax authorities cannot be ruled out, we must watch the outcome until the very end.”
However, he expressed concerns about the potential damage to Cha Eun Woo’s image, regardless of legal victory or defeat.
Lawyer Lee analyzed, “Most entertainers reach a settlement with the tax authorities at a certain level and close the case.” He said, “In Cha Eunwoo’s case, it seems that the National Tax Service pressured him, but since he refused to sign, they imposed the additional tax.” He further predicted, “Even if he wins the tax lawsuit later, the public will only remember that he evaded taxes,” adding, “This issue will continue even after his military discharge.”
Previously, the National Tax Service judged Cha Eunwoo’s income structure to be abnormal and notified him of additional income tax exceeding ₩20.0 billion KRW (about $13.8 million USD). Currently, the National Tax Service is focusing on investigating the service contract and profit distribution process between Company A, established by Cha Eunwoo’s mother, Ms. Choi, and his agency Fantagio. The tax authorities especially suspect that Company A is a “paper company” with no real business activities.
As the controversy spread, Cha Eunwoo issued an official statement on the 26th saying, “I sincerely apologize for causing concern and disappointment due to recent matters related to me,” and added, “As a citizen of Korea, I am deeply reflecting on whether my attitude toward my tax obligations was lacking.”
ASTRO’s Cha Eunwoo Personally Speaks Up About Tax Evasion Controversy