"20 Billion Tax Bomb Can't Be Paid"... Cha Eun-woo Hires Major Law Firm 'Sejong' to Counter

Known as a 'face genius' and loved for his upright image, actor Cha Eun-woo has entered into a full-scale battle by hiring one of the country's top law firms as he faces a record tax reassessment of 2 billion won.

According to legal and entertainment industry sources on the 26th (Korean time), Cha Eun-woo's side has recently appointed Law Firm Sejong as their legal representative to contest the National Tax Service's tax assessment and has initiated legal proceedings. Sejong is one of the top five law firms in Korea, showcasing significant influence in the entertainment sector, having handled the lawsuit regarding the termination of NewJeans' exclusive contract last year.

◆ "A Planning Agency at an Eel Restaurant?"... The Issue is 'Merely a Corporate Entity'

The crux of the matter is whether Cha Eun-woo has diversified his income through a one-person agency represented by his mother. The Seoul Regional Tax Office's Investigation Division 4 believes that Cha Eun-woo entered into service contracts with a corporate entity that only exists on paper to apply a lower corporate tax rate (maximum 24%) instead of the personal income tax rate (maximum 45%). Notably, the address of the said corporation is registered as an eel restaurant in Ganghwa-gun, Incheon, raising suspicions of it being a 'paper company'.

In response, the National Tax Service has notified him of an additional tax assessment of approximately 20 billion won. This is the largest tax assessment ever for a domestic entertainer.

◆ Expert Says "Planned Tax Evasion... Possibility of Criminal Charges"

Attorney and accountant Kim Myung-kyu stated, "Out of the 20 billion won, 6 to 10 billion won is likely to be additional tax due to 'false statements'." He analyzed, "The fact that the Investigation Division 4, known as the Grim Reaper of the business world, has been deployed indicates that the National Tax Service sees this not as a simple mistake but as 'intentional tax evasion'." If intent is proven, it could lead to criminal charges under the Tax Offenses Punishment Act.

◆ Adversity During Military Service

Cha Eun-woo, who enlisted in the Army Band last July and is currently serving as a private, has remained silent regarding this controversy. His agency, Fantagio, stated about the law firm appointment, "We cannot confirm it," but added, "The issue is whether the corporation represented by his mother is a legitimate tax subject, and we will clarify this through proper procedures." Cha Eun-woo's side has currently filed for a pre-assessment review, anticipating a fierce legal battle with the assistance of Sejong.