Cha Eun-woo's mother's eel restaurant has closed down. This eel restaurant was previously identified as the center of a suspected tax evasion case involving 20 billion KRW. On February 4, Fantagio, Cha Eun-woo's agency, stated in an official position that the currently operating "Eoje-yeon Cheongdam" is a completely different corporation from "Eoje-yeon Charcoal Grilled Eel" in Ganghwa Island. Fantagio emphasized that "Eoje-yeon Cheongdam" is operated by Fantagio M, a 100% subsidiary of Fantagio, and has no relation to Cha Eun-woo's family.

Cha Eun-woo's parents had been running "Eoje-yeon Charcoal Grilled Eel" in Ganghwa Island, Incheon. This eel restaurant shares the same address as the corporation established by Cha Eun-woo's mother. The National Tax Service (NTS) judged the corporation to be a paper company and stated that Cha Eun-woo and his mother set up a non-substantial corporation to reduce income tax. Accordingly, Cha Eun-woo was notified of an additional income tax assessment exceeding 20 billion KRW. This is known as the highest amount ever imposed on a domestic celebrity.

Last year, Cha Eun-woo underwent an intensive tax investigation by the Seoul Regional Tax Office's Investigation Division 4. The NTS claimed that Cha Eun-woo and his mother established the corporation and distributed income to apply the corporate tax rate in order to reduce income tax by as much as 45%. As a result, Fantagio was imposed an additional tax of 8.2 billion KRW in August last year. Cha Eun-woo has filed a pre-assessment review challenging the NTS's decision.

Cha Eun-woo enlisted in the military in July last year and is currently serving in the Army Band. At Cha Eun-woo's request, the NTS sent the tax investigation result notification after his enlistment. This led to suspicions that Cha Eun-woo enlisted to evade the investigation. On January 26, Cha Eun-woo posted on Instagram, "I sincerely bow my head and apologize. I am deeply reflecting on whether I have been strict enough in fulfilling my tax obligations as a citizen of the Republic of Korea." He explained that he enlisted because he could no longer postpone military service and thus entered the military without completing the tax investigation procedures.

"Eoje-yeon Charcoal Grilled Eel," operated by Cha Eun-woo's mother, reportedly closed at the end of last year. Subsequently, Fantagio M established an F&B division and opened "Eoje-yeon Cheongdam" in Cheongdam-dong, Gangnam-gu, Seoul. This was about two months after Cha Eun-woo's enlistment, leading some to claim that "Eoje-yeon Charcoal Grilled Eel" simply changed its name and reopened as "Eoje-yeon Cheongdam." However, Fantagio denied this and did not highlight any direct connection with Cha Eun-woo's family.

Fantagio M is an entertainment subsidiary primarily focused on developing new talent and training idols, established on July 1, 2025. On September 29 of the same year, Fantagio M relocated its address to Cheongdam-dong. During this process, it was revealed that the chef who managed the kitchen at "Eoje-yeon Charcoal Grilled Eel" is also responsible for food at "Eoje-yeon Cheongdam." This fact sparked various speculations about the connection between the two establishments.

Cha Eun-woo has appointed the law firm Sejong as his legal representative and is contesting the tax investigation results. On January 22, Fantagio stated, "The main issue in this matter is whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation." Cha Eun-woo also said, "Although I am currently serving in the military, this was never an intentional choice to avoid this controversy," and added, "I will sincerely cooperate with the ongoing tax-related procedures."

On January 27, Fantagio released a second statement, expressing, "We feel a heavy responsibility for the controversy arising from matters related to our company and affiliated artists." They emphasized that they are currently verifying facts according to the tax authorities' procedures and will faithfully cooperate with the investigation within the necessary scope. Fantagio also stated, "If legal and administrative judgments become clear in the future, we will responsibly take the necessary measures based on those results."