South Korea's 'Face Genius' Cha Eun-woo was recently reported to be suspected of tax evasion. The National Tax Service completed an investigation last year into him and the corporate entity established by his family. He was subsequently assessed an additional 20 billion won (approximately 53.82 million MYR) in back taxes. Yesterday (8th), he posted on Instagram, admitting that there had been negligence in his tax procedures. He stated that, in accordance with the findings of the National Tax Service of Korea, he had already paid all outstanding taxes and fines, and promised to take full responsibility for the incident, apologizing to the public.
Cha Eun-woo debuted as a member of the boy group ASTRO and later ventured into acting, starring in multiple hit dramas and successfully establishing an image as a 'high-IQ, good-looking' artist, earning frequent brand endorsement deals. Currently serving in the military, exposure of his tax issues has led some brands to terminate their contracts with him, dealing a significant blow to his image.
According to Korean media reports, the core issue of the incident is related to a one-person corporation established by Cha Eun-woo, with his mother serving as the representative and other family members as board directors and auditors. The company's registered address is the location of a family-run restaurant, but the company did not actually provide management or operations services. The National Tax Service ruled that the company was a shell corporation set up to reduce tax liability, and consequently imposed additional taxes and penalties on Cha Eun-woo.
In response to public doubts, Cha Eun-woo publicly explained for the first time the background of establishing the company. He said that at the time, he was exploring the development of his career and wanted to use a corporate structure to stabilize his entertainment career. He admitted that he failed to thoroughly examine the details and regulations, which ultimately led to the current issue, and emphasized that these decisions were led by himself and not his family or others.
Cha Eun-woo said that as a result of this incident, he has engaged in deep self-reflection regarding his financial and managerial negligence, and will strengthen internal reviews and processes to ensure that all future activities and income are handled in compliance with the rules. He reiterated that he will take full responsibility for his choices and will do his utmost to prevent similar incidents from happening again.
Source: Apple Daily