Cha Eun-woo has been accused of using a “shell company” under his mother’s name to evade taxes, prompting his agency to issue a response.

(Seoul, Jan 23) Cha Eun-woo, a member of the K-pop group ASTRO, has come under public scrutiny over a tax-related dispute. His agency, Fantagio, released an official statement on January 22, emphasizing that the matter remains under investigation and has not yet reached a final conclusion.

Fantagio stated that the key issue does not involve a confirmed case of tax evasion, but rather a legal question regarding whether a corporation established by Cha Eun-woo’s mother should be considered a substantive taxable entity. The agency said the issue concerns interpretation and application of tax law and will be addressed through proper legal procedures.

Earlier reports indicated that tax authorities had notified Cha Eun-woo of an additional tax assessment exceeding 20 billion won, following an intensive audit conducted in the first half of last year. The audit was described as similar to recent cases involving so-called “one-person planning companies.”

According to reports, in addition to his activities under Fantagio, a separate company linked to his mother entered into a service agreement related to his entertainment work, resulting in income being distributed among Fantagio, the corporation, and Cha Eun-woo personally. Tax authorities reportedly questioned whether the company performed actual services and concluded that profits ultimately flowed back to the artist, leading to the additional assessment.

Fantagio disputed this view, stating that the company was legally established and properly qualified, not a shell entity, and that they will present their position through legal channels. The agency added that Cha Eun-woo and his tax representatives will fully cooperate with the investigation and reaffirmed his intention to fulfill all tax obligations as a citizen.

Cha Eun-woo has been serving in the military since July of last year. The investigation and related notifications reportedly progressed around the time of his enlistment. The case remains ongoing, with a final decision pending from the tax authorities.