Cha Eun-woo of ASTRO is under investigation for tax evasion, with a reported 20 billion won owed, linked to his personal corporation.

It has been reported that ASTRO's Cha Eun-woo purchased real estate worth about 2.8 billion won (about 300 million yen) through a personal corporation. On March 8 in South Korea, MBC's "Straight" extensively covered the case of Cha Eun-woo's personal office, which was pursued for about 20 billion won (about 2.1 billion yen) in taxes by the National Tax Service. The scale of Cha Eun-woo's tax bill is considered the largest ever for a celebrity's tax evasion. Particularly, the involvement of the Seoul Regional Tax Office's Investigation Division 4, which mainly handles large corporations, has raised concerns about the seriousness of the tax evasion allegations. Cha Eun-woo is suspected of evading taxes by settling earnings under the name of his personal office rather than personally when receiving payments from his agency. The "Straight" team visited the registered location of the personal office, which is a two-story building in Ganghwa-gun, where a sign for "Charcoal Grilled Eel" remained at the entrance. The interior was empty, but it was a restaurant run by Cha Eun-woo's family until a few months ago. Cha Eun-woo had previously posted photos taken there on social media, which gained attention. Externally, it appeared to be an ordinary restaurant building, with no traces of an entertainment management company, but it was registered as the headquarters of his personal office. The corporation was established in 2019, with Cha Eun-woo holding 100% of the shares. His mother is the representative of the corporation, while Cha Eun-woo and his brother are internal directors, and his father is listed as an auditor, typical of a family corporation structure. For high-income earners like Cha Eun-woo, the maximum income tax rate can reach about 49.5% when settling earnings under their personal name. In contrast, if settling under the corporation's name, only corporate tax rates of about 22-27.5% apply, resulting in a tax rate difference of over 20%. If the earnings are retained as corporate reserves or processed under the guise of operational expenses or salaries for family members registered as employees, the tax burden can be further reduced. While settling earnings through a personal office is not illegal, if it operates as a paper company without substantial entertainment planning activities, it can be deemed a structure to apply lower corporate tax instead of higher income tax, thus considered tax evasion by the National Tax Service. "Straight" confirmed that Cha Eun-woo's personal corporation also purchased significant real estate. In July 2020, the corporation bought a building and land, including a restaurant, and nearby forest land, totaling about 4,500 pyeong. The purchase amount was 1.75 billion won (about 180 million yen), of which 800 million won (about 80 million yen) was financed under the corporation's name. In February of last year, additional land in front of the restaurant was purchased for 1.1 billion won (about 120 million yen). The total purchase amounts to about 2.85 billion won (about 300 million yen), covering a total area of 5,730 pyeong, equivalent to about three soccer fields. In relation to this discussion, Cha Eun-woo's agency, Fantagio, commented on the 1st of last month, "The main issue is whether the corporation established by Cha Eun-woo's mother is subject to substantial taxation, and this is not yet a finalized or announced case. We plan to actively explain the legal interpretation and application issues in accordance with proper procedures." Fantagio also stated, "Once legal and administrative judgments become clear, we will responsibly take necessary measures based on the results. However, we earnestly request that speculation and unverified information regarding the claims and suspicions raised be refrained from excessive interpretation."