Cha Eun-woo’s $13.7M tax evasion claims are ‘character assassination,’ says Korea’s top tax rights group

As debate swirls over Cha Eun-woo’s tax case, the Korea Taxpayers Association has stepped in.

In a statement released on the 29th, the association, South Korea’s only civic group dedicated exclusively to taxpayer rights, warned against the growing tendency to equate tax assessments with criminal wrongdoing. “Unilaterally condemning someone as a tax evader solely because they were subject to tax collection reflects a perspective that views taxes only through the lens of state power,” it said, stressing that the presumption of innocence must be upheld.

The group underscored that tax avoidance itself is not illegal. “Tax avoidance is a taxpayer’s right. If it succeeds, it becomes ‘tax savings,’ and if it fails, it is deemed ‘tax evasion,’” the association explained, citing a U.S. Supreme Court ruling that affirms a taxpayer’s legal right to reduce or avoid taxes within the limits of the law.

Addressing reports that a corporation registered under the name of Cha Eun-woo’s mother was a so-called 'paper company,' the association argued that such labeling violates the presumption of innocence. It pointed to the Nene Chicken case, in which the National Tax Service (NTS) accused a company of being a shell entity lacking human and physical infrastructure. While a lower court initially found the defendant guilty, the Supreme Court later overturned the ruling and acquitted the accused.

“Media outlets unilaterally branding a corporation as a ‘paper company’ contradicts the presumption of innocence and risks prejudging ongoing appeals or litigation,” the association said, reiterating a fundamental principle of criminal law: “Even if 100 criminals go free, we must not create a single wrongful conviction.”

The association also raised concerns over potential leaks of confidential tax information, noting that reports on celebrity tax investigations would be unlikely without disclosures from within the tax authority. “Leaking tax information is illegal,” it said, criticising the National Tax Service Commissioner for failing to investigate or respond decisively to such leaks. The group called for strict internal audits and severe punishment for any officials found responsible.

The KTA emphasized, "‘Being assessed additional taxes = deserving condemnation’ is not a valid equation. On the contrary, the NTS, which creates tax laws that are difficult even for experts to understand and fails to provide adequate prior guidance, should be criticized. Condemning someone as a tax evader solely because they were assessed taxes amounts to character assassination born of ignorance."

It further rejected the idea that tax collection itself warrants public condemnation. “The equation ‘being subject to tax collection equals guilt’ does not hold,” the association said, adding that criticism should instead be directed at a tax system so complex that even experts struggle to interpret it, compounded by inadequate prior guidance from authorities. Condemning individuals solely because they faced tax collection, it warned, amounts to a form of “honor-killing driven by ignorance.”

Meanwhile, singer and actor Cha Eun-woo (real name Lee Dong-min) reportedly underwent a high-intensity irregular tax audit conducted by the Seoul Regional National Tax Service Investigation Bureau 4 in July last year. He was later notified of additional tax assessments exceeding 20 billion won (approximately $13.7 million). The controversy surfaced publicly on January 22, when reports emerged that Cha had been investigated on suspicion of tax evasion.

The National Tax Service subsequently confirmed the additional tax assessment.

On January 26, Cha Eun-woo addressed the issue directly in a statement shared on Instagram, expressing deep regret and reflecting on his responsibilities as a citizen. He clarified that his military enlistment last year took place before the tax investigation was completed and emphasized that it was not an attempt to evade scrutiny.

Eunwoo said he would fully cooperate with tax procedures and accept any decisions made by the authorities, vowing to live with greater responsibility moving forward and to repay the support he has received over his 11-year career.

As the investigation continues, both Cha Eun-woo and his agency, Fantagio, have pledged transparency and full cooperation, urging the public to avoid speculation and allow the legal process to unfold.