Cha Eun-woo apologises over $13.7 million tax allegations: 'If I were not a soldier right now...'

Cha Eun-woo has personally addressed recent allegations surrounding his taxes.

Earlier, on January 22, reports surfaced that the Seoul Regional Tax Office’s Investigation Bureau 4 had investigated Cha Eun Woo last year on suspicion of tax evasion. The National Tax Service had subsequently notified him of an additional tax assessment exceeding 20 billion won (approximately $13,600,000).

On January 26, Cha Eun Woo took to his personal Instagram, sharing the following statement:

"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 myself.

Taking this incident as an opportunity, I have deeply reflected on whether my attitude toward my duty as a citizen of the Republic of Korea, particularly regarding tax payments, was sufficiently rigorous.

For the past few days, I have spent time contemplating and reflecting on what words I should offer first to convey even a little bit of my regret to those who were hurt by me.

I was worried that a lengthy explanation might sound like an excuse or even cause further fatigue, but I came to the conclusion that it is my duty to address this matter directly and offer my apology.

I am writing this after finishing my daily duties within the military unit. Currently, I am serving in the military, but this was by no means an intentional choice to avoid this controversy. Last year, I was in a situation where I could no longer postpone my military enlistment, and thus I enlisted without being able to complete the tax investigation procedures.

However, I deeply feel the responsibility for this misunderstanding, which also stemmed from my own shortcomings. 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. With that sentiment, I am writing this letter with all my sincerity.

For the long period of the past 11 years, despite having more shortcomings than possessions, I was able to be in this undeserved position as “Cha Eun Woo” thanks to your unreserved love and support. Therefore, I am indescribably sorry for not even being able to repay but to have caused great pain and fatigue to all those who believed in and supported me despite my inadequacies and to the many people I have worked with.

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.

In the future, I will reflect on myself more rigorously and live with a greater sense of responsibility, with the mindset of repaying the love I have received.

Once again, I sincerely apologize for causing concern.

January 26, 2026

Sincerely,
Cha Eun Woo"

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

Investigators allege the firm may have been used to route Cha Eun-woo’s entertainment income in a way that allowed it to be taxed at lower corporate rates, rather than the higher personal income tax brackets in South Korea, which can reach 45%.

The National Tax Service (NTS) reportedly concluded that the company lacked genuine business activity—a so-called “paper company”—and assessed that taxes were underpaid by over 20 billion won.

Although Cha Eun-woo is officially represented by Fantagio, authorities claim his earnings were split between Fantagio, the company under his mother’s name, and Cha himself. Tax officials argue that this arrangement effectively reduced his tax burden by more than 20 percentage points.

If the NTS’s assessment stands, legal experts estimate the total income involved could exceed 100 billion won, making this one of the largest tax disputes involving a single entertainer in South Korea.