Singer and actor Cha Eun-woo addressed the allegations of tax evasion amounting to 20 billion won on the 26th while serving in the military. He stated, "I will sincerely comply with the tax-related procedures going forward." Cha Eun-woo has filed a pre-assessment review against the National Tax Service's decision to impose a 20 billion won tax surcharge. On the same day, a complaint was filed on the National Petition Board regarding Limited Liability Company A, represented by Cha Eun-woo's mother, intensifying the dispute over the truth.

Cha Eun-woo posted a lengthy apology on his social media, saying, "This incident has made me deeply reflect on whether I have been sufficiently strict in fulfilling my duty as a taxpayer as a citizen of the Republic of Korea." Last year, he underwent a rigorous investigation by the Seoul Regional Tax Office's Investigation Division 4 on charges of tax evasion. The National Tax Service pointed out the contract for entertainment activity resources between A Corporation, established by Cha Eun-woo's mother, and Fantagio, highlighting a structure where Cha Eun-woo's income was split, and notified him of a tax surcharge exceeding 20 billion won. This is known as the largest tax surcharge ever imposed on an entertainer.

Regarding why he issued a statement while serving in the military, Cha Eun-woo explained, "I felt it was my duty to speak directly and apologize about this matter." He denied allegations that he enlisted in the military to evade the investigation, saying, "It was never an intentional choice to avoid this controversy." Cha Eun-woo added, "I will humbly accept the final judgment made by the relevant authorities and take full responsibility accordingly."

The core issue of the allegations is whether A Corporation is subject to substantive taxation. The National Tax Service has classified A Corporation as a "paper company," but A Corporation counters, stating it is "a company officially registered for cultural and artistic planning." The complaint filed on the National Petition Board requests an investigation into A Corporation's registration status for cultural and artistic planning and the possibility of failure to change the corporate address. A Corporation was established as a joint-stock company in 2022 and converted to a limited liability company within two years. There are suspicions that the address was moved to an eel restaurant in Ganghwa County operated by Cha Eun-woo's parents to avoid audits. Ganghwa County Office has received the complaint and started an investigation. Based on the complaint, Ganghwa County plans to visit A Corporation's address to check the status of the building's operation.

Meanwhile, actress Park Eun-bin promoted the upcoming project on behalf of Cha Eun-woo, but the tax evasion allegations have put the project's progress in jeopardy. On the 21st, at the "Next on Netflix 2026" event held at Conrad Seoul Hotel in Yeongdeungpo-gu, Seoul, Park Eun-bin introduced Netflix's new series "Wonderfuls" and mentioned Cha Eun-woo. She said, "This is my first time working with Cha Eun-woo. There couldn't be a better actor for this character." Referring to Cha Eun-woo's military service, she added, "I believe he is doing well wherever he is. I wish we could promote together, but I will work hard on his behalf."

However, the situation changed rapidly after the tax evasion allegations against Cha Eun-woo were reported on the 22nd. Tax authorities determined that Cha Eun-woo evaded income tax by using a corporation under his mother's name and notified him of a 20 billion won tax surcharge. The controversy grew when it was revealed that A Corporation's registered address was an eel restaurant in Ganghwa Island operated by his mother. Fantagio stated, "The main issue is whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation," adding, "We will actively clarify the legal interpretation and application issues through proper procedures."

This controversy arose just one day after Park Eun-bin expressed her hope for Cha Eun-woo's "glorious return." With the lead actor's risk emerging, it seems unavoidable to adjust the project's schedule. "Wonderfuls" is a supernatural comic action adventure set in 1999, a time when apocalyptic beliefs were widespread, about a group of neighborhood misfits who gain superpowers through an unexpected event and fight villains threatening the peace of Haeseong City. Cha Eun-woo completed all filming and enlisted in the Army Band in July last year.

Public criticism of Cha Eun-woo has intensified over the 20 billion won tax evasion allegations. He underwent a high-intensity tax investigation by the Seoul Regional Tax Office's Investigation Division 4 last year and was notified of a tax surcharge of about 20 billion won. This is the largest tax surcharge ever imposed on a domestic entertainer. Fantagio stated, "The main issue is whether the corporation established by his mother is subject to substantive taxation," adding, "This matter has not yet been finally confirmed or notified." However, vague explanations have only fueled public criticism.

It was revealed that the address of A Corporation, established by Cha Eun-woo's mother, was Gimpo City, Gyeonggi Province, at the time of its official registration for cultural and artistic planning in 2022, but after changing its organization, corporate nature, and name to a limited liability company in 2024, the address was moved to the eel restaurant in Ganghwa Island. This restaurant is operated by Cha Eun-woo's family, and it was revealed that Cha Eun-woo concealed this fact while promoting the eel restaurant, raising suspicions of covert advertising. The agency stated, "No confirmation is possible beyond the official position."

Additionally, reports emerged that the National Tax Service accepted Cha Eun-woo's request to postpone the notification of the tax investigation results until his enlistment in July last year, raising suspicions that he enlisted to avoid criticism. The agency also stated that it is difficult to confirm the "evading enlistment" allegations. Cha Eun-woo, praised as a "visual genius," swept the advertising industry and became an icon of the era. However, receiving the highest tax surcharge imposed on an entertainer has deepened public disappointment. Despite the difficulty of Cha Eun-woo issuing a statement while serving in the military, as public sentiment shows no sign of subsiding, the public insists that Cha Eun-woo must express his position in some way.