Alphabiz - Cha Eun-woo Pays $95 Million Tax Penalty in Full, Faces Ongoing Reputation Fallout and Military Petition

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[Alpha Biz= Paul Lee] SEOUL, April 9, 2026 — Cha Eun-woo has fully paid approximately 13 billion won ($95 million) in additional taxes following a high-profile tax controversy, but reputational damage continues as public petitions call for his removal from a military band assignment.

According to sources, Cha completed payment of the personal income tax reassessment notified by the National Tax Service on April 8. While the initial amount was reported to exceed 20 billion won, overlapping corporate and value-added taxes previously paid were adjusted through refunds, bringing the final payment to around 13 billion won.

The controversy centers on allegations that Cha established a family-run corporation — widely characterized as a paper company — to receive income from his entertainment activities. By channeling earnings through the entity, he allegedly reduced his tax burden by applying lower corporate tax rates of 10–20%, instead of higher personal income tax rates that can reach up to 49.5%.

Criticism intensified after it was reported that the company, registered under his mother’s name, listed an address tied to a restaurant in Ganghwa Island, fueling accusations of deliberate tax avoidance through a shell entity.

Following the payment, Cha issued a public apology via social media, stating that he “takes the matter seriously” and expressing regret for causing disappointment and confusion among fans.

Despite the apology and full settlement, complaints have been filed through a government petition platform calling for his removal from his current military band role. Petitioners argue that the position, which carries symbolic public visibility, requires a high level of integrity and risk management.

They also claim that the scale of the tax controversy could undermine morale among enlisted personnel and damage perceptions of fairness within the military.

A Ministry of National Defense official handling public petitions said the complaint has been referred to the relevant unit’s inspection office, which will review the facts and determine whether further action is warranted.

Previously, the ministry had responded to a similar petition filed in January, stating that the matter falls within the discretion of commanding officers and that no immediate changes to his assignment were under consideration.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)