The pristine image of “Face Genius” Cha Eun Woo is facing a major challenge as legal experts weigh in on a developing tax evasion scandal that has sent shockwaves through the industry.
Reports surfacing on January 23 KST suggest that the ASTRO member is under heavy scrutiny by the National Tax Service (NTS) for allegedly evading approximately 20 billion KRW (around $13.6 million USD) in taxes. The controversy centers around a peculiar business restructuring involving his mother’s entertainment agency.
The agency in question, originally known as Cha’s Gallery and based in Gimpo, underwent significant changes in September 2024. It was renamed The Annie, converted into a limited liability company (LLC), and—most controversially—relocated to Ganghwado. The new registered address? A family-owned eel restaurant.
According to legal experts, this move wasn’t just about a change of scenery. By converting to an LLC, the company is no longer obligated to disclose financial records via external audits. Furthermore, Ganghwado is designated as a “growth management zone,” a classification that allows corporations to bypass heavy acquisition taxes imposed in other regions.
The NTS suspects “The Annie” might be a “paper company.” Investigators noted the suspicious nature of a one-man entertainment agency operating out of a restaurant. The investigation revealed a potential income-splitting scheme where earnings were distributed between Cha Eun Woo, his main label Fantagio, and “The Annie” to allegedly avoid the steep 45% personal income tax bracket.
If these allegations hold true, Cha Eun Woo could join the ranks of global celebrities like Fan Bingbing and Shakira in high-profile tax evasion history. Fans and industry insiders are now waiting breathlessly to see how this legal battle unfolds.
