Cha Eun-woo raises an objection, and Kim Sun-ho pays..'Tax Controversy' Mixed Response [Star Issue]

*This content was translated by AI.

Attention is also being added to the somewhat mixed responses of Cha Eun-woo and Kim Sun-ho, two artists from Fantagio, who have raised tax-related suspicions such as tax evasion.

Cha Eun-woo recently surprised everyone by being caught up in suspicions of tax evasion worth 20 billion won. The National Tax Service determined that Cha Eun-woo evaded income tax by using a corporation in his mother's name, and notified him of the additional 20 billion won. In particular, the controversy intensified when it was revealed that the address of the corporation was the same as that of yesterday's charcoal grill operated by his mother.

Cha Eun-woo, who is currently serving in a military band, said on his SNS, "With this incident, I am reflecting on myself and deeply reflecting on whether my attitude toward tax obligations as a citizen of the Republic of Korea was strict enough." We will also humbly accept the results according to the final judgment made by the relevant agencies and fulfill our responsibilities accordingly," he said.

Fantagio said, "The current issue is being fact-checked in accordance with the tax authorities' procedures, and the agency and the artist are faithfully investigating to the extent necessary. If legal and administrative judgments become clear in the future, we will responsibly implement necessary measures according to the results.

Currently, Fantagio and Cha Eun-woo have filed an objection to the additional amount to be notified of tax collection by the National Tax Service and have applied for a tax audit (pre-rights relief procedure in which the taxpayer examines the legality of the notice and demands correction).

In this regard, a Star News report confirmed that Fantagio M, a subsidiary of Fantagio, moved its address to yesterday's Cheongdam, an eel restaurant located in Cheongdam-dong, Gangnam-gu, Seoul, on September 29, 2025. This is about two months after Cha Eun-woo joined the military on July 28, 2025.

Fantagio M is an entertainment-affiliated subsidiary whose main business is to develop new talents and foster idols, was established on July 1, 2025, and later established an F&B division to open yesterday's Cheongdam, an eel specialty store, at the end of 2025. The store uses the same name as yesterday's charcoal eel, which Cha Eun-woo's mother closed down after operating in Ganghwa Island, and Fantagio acknowledged that it is a business that inherited the brand identity of yesterday's charcoal eel. Yesterday's Charcoal Eel is also a place where Cha Eun-woo's mother ran the same address as the corporate company, which was suspected of tax evasion. In addition, the chef, who was in charge of the kitchen at yesterday's charcoal eel, is also known to be in charge of food at yesterday's Cheongdam. In other words, after the 'Yesterday's Charcoal Eel' operated by Cha Eun-woo's mother was organized, an F&B division was established to continue the brand and the 'Yesterday's Yeondae Cheongdam was opened in Cheongdam-dong.

Since then, suspicions about Kim Sun-ho's single-person corporation have also emerged, adding to public anger.

Kim Sun-ho was suspected of creating a paper company by establishing a performance agency with his home in Yongsan-gu, Seoul, and listing himself as the CEO and his parents as internal directors and auditors. In addition to the possibility of bypassing the income, suspicions such as breach of trust and embezzlement that Kim Sun-ho's parents received hundreds to tens of millions of won in salary through corporate banks, and that his father used corporate cards for living and entertainment expenses such as cigarette prices and payment for karaoke bars, and the use of vehicles under the name of the corporation were also pointed out.

In response, Fantagio said on the 2nd, "Kim Seon-ho's past single-person corporation was established for theater production and theater-related activities," adding, "It is never a corporation established for the purpose of deliberate tax savings or tax evasion." However, after moving to Fantagio, the actual business activities did not take place for about a year, and it is currently in the process of closing the business in accordance with relevant laws and procedures." Soon after, "Kim Sun-ho established a corporation in January 2024 for acting activities and theater production." "We have received settlement payments from the corporation for activities from the establishment of the corporation in January 2024 to the start of a new contract with Fantagio in February 2025," he explained.

"After Kim Seon-ho recognized that the operation of the corporation itself could be misleading, the corporation stopped operating and practically no activities were conducted through the corporation for more than the past year," he said. "Fantagio and Kim Sun-ho have been paying the settlement directly to individual actors since the date of signing the exclusive contract in February 2025. "We have no relationship with the corporation regarding the contract process and activities between Fantagio and Kim Sun-ho," it said.

In particular, Fantagio said, "Kim Seon-ho returned all past corporate card usage details, family benefits, and corporate vehicles as a preemptive measure to correct the operation of the corporation, which was ignorant at the time." The corporate closure process is in progress. The administrative process will be completed soon," he said.

Kim Sun-ho then said through Fantagio, "We deeply reflect on establishing the corporation and maintaining it for about a year without a sufficient understanding of the operation of the corporation. I bow down and say sorry," he said.

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*This content was translated by AI.