ASTRO Cha Eunwoo enlisted as a soldier on July 28, 2025 (KST). His absence has caused Fantagio, the management company behind him, significant financial difficulties, as per Korean media.
Chosun Biz quoted that Fantagio is currently "staggering under financial strain."
As per the reports, Fantagio was issued another bill for tax of approximately ₩8.20 billion KRW (approximately $5.90 million USD) by the Seoul Regional Tax Office.
The amount, which is 14.12% of Fantagio's equity capital, includes corporation tax and liabilities from 2020 to 2024. The payment must be made by October 31.
In November, there is an even greater challenge. The company has to repay ₩13.0 billion KRW (approximately $9.35 million USD) bonds when its 7th round CBs come due.
Chosun Biz wrote that since Fantagio's share price dropped substantially, investors won't be able to exchange bonds for shares, so repayment would have to be made in cash with a 7% interest rate.
As of March, Fantagio had only ₩11.0 billion KRW (approximately $7.91 million USD) in cash and cash equivalents.
Nevertheless, between October and November, it will require at least ₩21.0 billion KRW (approximately $15.1 million USD).
Industry observers predicted Fantagio had become too reliant on a shallow pool of intellectual property. Based on its filings, one artist had generated over half of total sales in Q3 2023, commonly thought to be Cha Eunwoo. With his enlistment, revenues are likely to fall further.
Fantagio's attempts to venture into the K-drama industry have also failed. The firm had raised money through two rights issues, ₩25.0 billion KRW in 2021 and ₩23.0 billion KRW in 2024, but its big-budget historical drama series Royal Physician Dae Jang Geum has been postponed.
Speaking in a statement, a Fantagio representative explained, "We raised capital for a K-Drama production, but the historical drama market has slumped. Rather than push forward with the original schedule, we are waiting for conditions to improve."
On 22nd August, Fantagio published initial earnings, which had revenue of ₩38.1 billion KRW (approximately $27.4 million USD) in decline by 42% year-over-year.
The agency reported an operating loss of ₩2.80 billion KRW ($2.01 million USD) and a net loss of approximately ₩900 million KRW ($647,000 USD).
In answer to queries, the company expressed optimism. "We are reviewing the tax assessment with legal counsel and considering possible appeals.
Discussions are also ongoing about the additional tax burden and CB repayment. We have short-term financial assets that can be liquidated, so this is not a liquidity crisis." — Fantagio
