The advertising industry is also feeling the effects of the growing repercussions surrounding ASTRO member and actor Cha Eun Woo, who is currently accused of receiving over 20 billion KRW, or approximately $13.7 million USD, in additional income taxes due to charges of tax evasion.
According to reports, all content on the YouTube channel and social media accounts of the Shinhan Bank containing images and videos of Cha were changed from public viewable content to private viewable content. This makes all of them inaccessible to the public, who can view only messages saying they cannot view the content.
There is no official statement from the Shinhan Bank about the change in official advertising content containing images of Cha. However, speculation is rife that there is some connection between the change and the recent tax controversy. According to an article on AllKpop, Shinhan had appointed Cha as their advertising model replacing Kim Soo Hyun.
The tax allegations stem from an investigation conducted last year by the Seoul Regional Tax Office's Investigation Division 4. Authorities examined suspicions that Cha had reduced his tax burden through a one-person agency established under his mother's name.
Following the probe, the National Tax Service reportedly notified Cha of additional income tax exceeding 20 billion KRW, an amount described as the largest tax reassessment ever imposed on a Korean celebrity, according to coverage cited by The Chosun Daily.
Under this system, income generated from his work was distributed among Fantagio, the family-linked agency and Cha himself. Tax authorities reportedly concluded that the one-person company did not provide substantive services and functioned largely as a paper entity.
Investigators believe the structure was designed to lower the effective tax rate by shifting income away from the top personal income tax bracket, which can reach 45 percent, to a corporate tax rate that is significantly lower. The Chosun Daily noted that officials viewed this setup as an attempt to reduce overall tax obligations rather than a legitimate business arrangement.
In response to the allegations, Fantagio addressed the matter through an official statement. Before sharing the agency's position, Fantagio clarified its stance on the central issue under review.
Fantagio stated, "The key issue in this case is whether the corporation established by Cha Eun Woo's mother qualifies as a substantive taxable entity. This matter has not been finally confirmed or officially assessed, and we plan to actively present our position through lawful procedures regarding the interpretation and application of the law. The artist and his tax representatives will fully cooperate to ensure the process is concluded as swiftly as possible."
As the investigation continues, industry observers are closely watching how the outcome may affect Cha's endorsements and public image.
