Cha Eun-woo Tax Scandal Explained: $13.7 Million Alleged Shortfall and Legal Battle

Few controversies hit South Korea’s celebrity world harder than tax allegations — and now K-pop and K-drama star Cha Eun-woo finds himself at the center of one.

The ASTRO singer and actor is under scrutiny by South Korea’s National Tax Service (NTS) over an alleged 20 billion won (roughly $13.7 million) tax shortfall tied to a company registered under his mother’s name. While Cha hasn’t been criminally charged, the case has already caused commercial fallout and sparked intense public debate.

Here’s what we know so far.

The Company at the Center

According to tax authorities, the controversy revolves around a business reportedly established by Cha Eun-woo’s mother, widely reported as Cha’s Gallery, along with later successor entities.

Investigators allege the company may have been used to funnel Cha’s entertainment income in a way that allowed it to be taxed at lower corporate rates instead of the higher personal income tax brackets, which can reach 45% in South Korea.

The NTS reportedly concluded that the firm lacked real business substance — what’s known as a “paper company” — and assessed that taxes were underpaid by more than 20 billion won.