Cha Eun-woo, a South Korean singer and actor whose legal name is Lee Dong-min, faces allegations that he evaded more than 20 billion won ($13.6 million) in taxes through a company established by his mother, according to information reported from a National Tax Service (NTS) audit conducted in South Korea last year before his mandatory military enlistment scheduled for July 2025.
The NTS conducted a tax audit on Cha and issued a tax assessment after it found that his income from entertainment activities flowed through a corporate entity created by his mother, which media reports identified only as “Company A.”
Company A held a service contract with Cha Eun-woo’s management agency and reportedly received payments related to his entertainment work instead of Cha receiving the income directly as an individual.
The NTS reviewed financial records and contract structures related to Company A and Cha’s management agency to determine whether the arrangement constituted a method to reduce or avoid Cha’s individual tax burden.
Tax officials examined whether Company A performed actual business services corresponding to the income it received or whether it functioned primarily as a vehicle to reroute Cha’s entertainment earnings.
The assessment issued by the NTS reportedly covers additional income tax and related charges that the agency concluded Cha owed as a result of the income channeled through Company A.
Media outlets in South Korea reported that the audit took place ahead of Cha’s planned enlistment in the military in July 2025, a period when public authorities typically review high-income individuals’ tax compliance.
The reports stated that the NTS initiated the audit as part of its ongoing enforcement activities targeting the use of family-controlled corporations by celebrities and high earners to manage appearance fees, advertising revenue, and other entertainment-related income.
The NTS has not publicly disclosed the full audit report, but officials cited by local media indicated that the agency treated the income paid to Company A as Cha’s personal income for tax purposes.
Cha’s mother reportedly registered Company A as a service provider that could contract with entertainment agencies and advertisers, and the company then entered into a service agreement with Cha’s management agency for his activities.
Tax authorities evaluated whether the commission rates, fee structures, and cost allocations between Cha, Company A, and his management agency matched market standards for independent corporate service providers.
The NTS used these findings to calculate the alleged tax shortfall and to determine the amount of the assessment, which includes back taxes and possible penalties under South Korean tax law.
Cha Eun-woo’s management agency and representatives have not publicly released a detailed statement on the NTS assessment or on the specific findings related to Company A, according to local media coverage.
The reported tax dispute emerges as Cha prepares for his mandatory military service, which all able-bodied South Korean men must complete, and as he maintains an active career in music, acting, and endorsements.
