SEOUL, Jan 22 — South Korean actor and Astro member Cha Eun-woo is under investigation by the country’s National Tax Service (NTS) over alleged tax evasion amounting to 20 billion won (US$13.6 million), Channel News Asia (CNA) reported.

The investigation, which involved an intensive audit by the Seoul Regional Tax Office’s Investigation Division 4, took place in July 2025 before Cha enlisted for his mandatory military service, according to the news report.

The report further said the NTS later informed the actor that he owed additional taxes, including income tax, after concluding that Cha had evaded tax through a “one-person agency” set up by his mother.

Although Cha is signed with management company Fantagio, investigators found that a separate company established by his mother was placed between the actor and Fantagio via a service contract.

This arrangement reportedly allowed Cha’s earnings to be divided between Fantagio, his mother’s company and Cha himself.

Authorities reportedly also said that the company did not provide any real services and appeared to be a “paper company” created to lower Cha’s tax liability.

The corporate tax rate in South Korea is lower than the income tax rate, which can reach 45 per cent.

CNA also reported that the tax authorities also noted the company’s registered address was in a remote part of Ganghwa Island, raising doubts about its legitimacy as an entertainment business office.

While several imported cars were registered under the company and various expenses were processed, investigators said there was no clear evidence of services being provided that differed from those by Fantagio.

Cha and his mother were summoned for questioning, and authorities concluded that the financial benefits gained through the company ultimately flowed back to Cha. The NTS said the actor had failed to pay 20 billion won in income tax.

CNA also reported that the fallout affected Fantagio. The agency was hit with an additional tax bill of 8.2 billion won by the Seoul Regional Tax Office in August 2025, after authorities determined that Fantagio had processed false tax invoices issued by the company set up by Cha’s mother.

Fantagio issued a statement on Jan 22 saying the matter had not yet been finalised and that it would “actively explain our position through lawful procedures” on legal interpretation and application.

The agency added that Cha and his representatives would cooperate with the investigation and that the actor would “continue, as a citizen of this country, to faithfully fulfil tax filings and his legal obligations”.

Cha is currently serving his military duty and is expected to be discharged in January 2027.