Cha Eun-woo Addresses Tax Evasion Allegations with Detailed Apology During Military Service
South Korean actor and singer Cha Eun-woo has issued a comprehensive personal statement addressing widespread tax evasion allegations that have captured significant media and public attention. The controversy has emerged as one of the most prominent financial scandals involving a celebrity in recent South Korean entertainment history.
Apology Letter to Fans and Public
In a heartfelt message posted on his official social media account, Cha expressed profound regret and offered sincere apologies to those affected by the ongoing controversy. His statement was shared while he continues to fulfill his mandatory military service obligations, adding a layer of complexity to the situation.
Cha began his message with a formal address: "Hello, this is Cha Eun Woo. I sincerely bow my head and apologize for causing concern and disappointment to many people due to various recent matters involving me."
The actor revealed that he has used this incident as an opportunity for deep reflection regarding his responsibilities as a citizen of the Republic of Korea, particularly concerning tax payment obligations. He acknowledged spending considerable time contemplating how to properly convey his remorse to those who have been hurt by the situation.
Military Service Context and Timing
Cha specifically addressed concerns about the timing of his military enlistment in relation to the tax investigation. "Currently, I am serving in the military, but this was by no means an intentional choice to avoid this controversy," he clarified. The actor explained that he had reached a point where he could no longer postpone his military service and enlisted without being able to complete the ongoing tax investigation procedures.
He expressed particular regret about being unable to personally visit those affected due to his military obligations. "If I were not a soldier at the moment, I would want to personally visit and bow my head to all those who were harmed by this incident," Cha stated, emphasizing the sincerity behind his written communication.
Gratitude and Future Commitments
The actor reflected on his eleven-year career, acknowledging the support he has received despite his shortcomings. He expressed deep sorrow for causing pain to fans, colleagues, and supporters who have believed in him throughout his journey.
Cha made specific commitments regarding the ongoing tax situation: "I will faithfully participate in the tax-related procedures that will proceed in the future. Furthermore, I will humbly accept the final decision made by the relevant authorities and take full responsibility accordingly."
He concluded with a promise to live with greater responsibility and a mindset focused on repaying the love he has received throughout his career.
Understanding the Tax Evasion Allegations
Cha's statement marks his first direct public address of the allegations that have been circulating for months. The controversy centers on an investigation conducted by South Korea's National Tax Service (NTS) examining how his income was reported for tax purposes.
Authorities have alleged that Cha might owe more than ₩20 billion (approximately ₹200 crore or $13.6 million) in unpaid taxes, penalties, and interest following a detailed audit. This represents one of the largest tax assessments ever sought from an individual entertainer in South Korean history.
Investigation Details and Corporate Structure
Reports indicate the NTS began examining Cha's tax records during the first half of 2025, before his military enlistment in July. Investigators have focused particular attention on a company established in 2022 and registered under his mother's name.
This company allegedly contracted with Cha's primary agency, Fantagio, to receive portions of his entertainment income. Tax authorities reportedly believe this entity functioned as a "paper company" – an organization without genuine business operations – and that income channeled through it was taxed at lower corporate rates rather than the higher personal income tax rates applicable to high-earning individuals.
Legal Implications and Industry Impact
Legal specialists have noted that if investigators conclude the tax avoidance was intentional, Cha could potentially face criminal prosecution under South Korea's stringent tax laws, though no formal charges have been announced at this stage. The assessment could include:
- Civil penalties and interest charges
- Potential criminal sanctions for deliberate evasion
- Formal legal proceedings depending on investigation outcomes
The commercial impact of these allegations has already begun to manifest across various sectors. Major brands have scaled back advertising campaigns featuring Cha, and the entertainment industry has started to distance itself from the actor amid growing public scrutiny and concern about association with the controversy.
The situation continues to develop as both the tax investigation and Cha's military service proceed simultaneously, creating a unique circumstance that will likely influence how the case unfolds in the coming months.
