Cha Eun-woo (28, real name Lee Dong-min), who reigned as the flawless icon of the Korean entertainment industry by coining the term "Choi-Choi-Cha-Cha (My bias is my bias, but Cha Eun-woo is Cha Eun-woo)," is facing the biggest crisis since his debut. A significant crack has appeared in his image as an "upright young man" following reports that the National Tax Service (NTS) notified him of approximately 20 billion KRW in back taxes.
The core of this scandal, which hit the entertainment industry in January 2026, is alleged income tax avoidance. The NTS suspects that Cha diverted massive earnings, which should have been counted as personal income, to a family-owned corporation. This scheme allegedly allowed him to pay a corporate tax rate in the 20% range instead of the income tax rate, which can reach up to 45%. This finding comes after an intense tax audit by Investigation Bureau 4 of the Seoul Regional Tax Office, known as the "Grim Reaper of the business world."
The controversy was fueled by the revelation of the true nature of "Company A," the family corporation identified as the conduit for tax evasion. The registered address of this company, headed by Cha's mother, was confirmed to be a building in Ganghwa-gun, Incheon—a location that was formerly a charcoal grilled eel restaurant operated by his parents. The fact that a management company handling tens of billions of won in revenue from broadcasts and commercial shoots is based in a rural eel restaurant rather than a professional office adds weight to suspicions of it being a "paper company." The public is finding it difficult to accept the explanation that professional management activities took place where eels were being grilled.
In response, his agency, Fantagio, immediately pushed back. They maintain that Company A is a legitimately registered pop culture arts planning business and that the issue arises from a difference in the interpretation of tax laws, not tax evasion. Currently, Fantagio and Cha's side have filed for a pre-assessment review to contest the NTS's taxation decision, foreshadowing a legal battle.
However, the market is reacting coldly even before any legal verdict is reached. The financial sector, which values trust above all else, has reacted most sensitively. Shinhan Bank, which featured Cha as its main model, recently set promotional posts featuring him on its official social media accounts to private or deleted them. In the advertising world, erasing traces of a model is typically interpreted as a strong signal of "cutting ties," implying contract termination or failure to renew. With fashion and beauty brands for which he serves as an ambassador also monitoring the situation, his status as the "King of Ads" is shaking to its core.
To make matters worse, suspicions regarding the timing of his military enlistment have surfaced. Regarding his enlistment in the Army Band last July, some are casting suspicious eyes, asking if it was a so-called "flight enlistment" to avoid the pressure of the tax audit. As he has been loved by the public for his sincere and upright image, the sense of betrayal caused by these allegations of expedient tax avoidance is profound.
A truth battle over 20 billion won hidden behind the sign of an eel restaurant. Seoulicious will continue to watch closely whether Cha's side can prove actual business operations during the pre-assessment review and turn back the tide of public opinion.