Not Just Cha Eun-woo Involved in Tax Evasion; CL and Kang Dong-won's Bosses Also Implicated

The South Korean entertainment industry is anything but calm today. First, ASTRO’s “Face Genius” Cha Eun-woo was revealed to have used his mother’s company to evade taxes, resulting in the National Tax Service chasing him for 20 billion won (about 55.03 million MYR) in back taxes, which he is disputing. Meanwhile, second-generation girl group 2NE1’s leader CL (real name: Lee Chae-rin) and actor Kang Dong-won’s management companies failed to register with the district office as popular culture and arts planning businesses, violating the Development of the Popular Culture and Arts Industry Act. The Yongsan Police in Seoul confirmed that CL and Kang Dong-won’s bosses have been referred to the Seoul Western District Prosecutor’s Office for investigation.

After leaving YG Entertainment, CL established her one-person agency “Very Cherry” in February 2020. According to South Korean media outlet Kyunghyang Sports, CL was reported for failing to register the company as a popular culture and arts planning business with the local district office, yet operating without registration for as long as 5 years and 7 months, which is alleged to be illegal. As CL holds the position of company owner, she has been referred to the prosecution as a suspect.

Similarly, after leaving YG Entertainment, Kang Dong-won established his one-person agency “AA Group” in January 2023. The company failed to register according to regulations and operated for about 2 years and 9 months, violating relevant laws and receiving disciplinary action. However, police determined that Kang Dong-won was not involved in the company’s operations or management, focusing solely on his artistic activities, and was thus found to have no criminal suspicion. Company boss A, however, was referred to the prosecution for investigation. According to regulations, running an entertainment management company requires registration as a popular culture and arts planning business; violators can face up to 2 years in prison or a fine of up to 20 million won (about 55,000 MYR).