Cha Eun-woo suspected of 20 billion won tax evasion... Tax officials and reporters accused


The Korea Taxpayers Federation filed a police complaint against a tax official and a journalist who leaked tax information related to actor Cha Eun-woo's alleged tax evasion of 20 billion won. On February 10, the Korea Taxpayers Federation announced, "Regarding the case in which tax information related to Cha Eun-woo's tax investigation was leaked to the media, we have filed a complaint with the National Police Agency's National Investigation Headquarters against an unidentified tax official who disclosed the information and the journalist who first reported it, on charges of violating the Personal Information Protection Act and criminal breach of official secrets under the Criminal Act."

The Korea Taxpayers Federation, a civic organization established in 2001 to protect taxpayers' rights, interprets this complaint as a measure to safeguard taxpayers' rights. In the complaint, the federation pointed out that Article 81-13 (Confidentiality) of the Framework Act on National Taxes strictly prohibits tax officials from providing or disclosing tax information or using it for purposes other than intended, in order to protect taxpayers' rights.

The federation explained, "Article 71 of the Personal Information Protection Act stipulates that those who disclose personal information learned through their duties or provide it without authorization, or those who knowingly receive personal information for profit or improper purposes, shall be punished by imprisonment of up to five years or a fine of up to 50 million won. Article 127 of the Criminal Act also criminally punishes public officials who disclose official secrets in the course of their duties."

The federation claimed, "The accused unlawfully leaked specific tax information related to Cha Eun-woo's tax investigation, violating the confidentiality principle guaranteed by the Framework Act on National Taxes and infringing on the taxpayer's rights. Since the detailed additional tax collection records and investigation procedures are information that only tax officials involved in the investigation or managers in the approval line can know, this case highly suggests an internal leak of tax information."

They added, "Such information leakage is a serious matter that can cause irreparable harm to the parties involved," and requested a thorough investigation. The federation emphasized, "This is not to defend or support any individual but to establish social trust that 'tax information is securely protected under all circumstances.'"

Attorney Lee Kyung-hwan, representing the complainant, stated, "Cha Eun-woo, as a citizen and taxpayer of the Republic of Korea, should be equally subject to the taxpayer rights stipulated in the Framework Act on National Taxes and the constitutional principle of presumption of innocence. The law must be enforced equally regardless of fame, and it is undesirable for tax information to be leaked and social stigma to be attached simply because someone is famous."

Kim Sun-taek, chairman of the Korea Taxpayers Federation, pointed out, "The National Tax Service is an institution that holds large-scale sensitive personal information such as income, assets, medical expenses, donation expenditures, and credit card usage details, including tax investigation information." He added, "If such information is managed carelessly, it is a serious problem. The National Tax Service must actively cooperate with this investigation to restore public trust in the protection of tax information."

Last year, Cha Eun-woo underwent an intensive investigation by the 4th Division of the Seoul Regional Tax Office on allegations of tax evasion. The National Tax Service notified him of additional tax collection exceeding 20 billion won, including income tax. This is known as the largest additional tax imposed on an entertainer to date. After receiving the notice, Cha Eun-woo's side requested a review of the appropriateness of the National Tax Service's decision through a tax appeal.

On January 22, Fantagio, Cha Eun-woo's agency, officially stated, "The main issue in this matter is whether the corporation established by Cha Eun-woo's mother is subject to actual taxation. This matter has not yet been finally confirmed or notified, and we plan to actively clarify the legal interpretation and application issues through proper procedures." Fantagio added, "The artist and tax representatives will sincerely cooperate to ensure that the procedure is completed promptly. Cha Eun-woo promises to faithfully fulfill his tax reporting and legal obligations as a member of the public."

In an apology posted on social media on January 26, Cha Eun-woo wrote, "I am currently serving in the military, but this was never an intentional choice to avoid this controversy. Last year, I had no choice but to enlist as I could no longer postpone my military service, leaving the tax investigation procedures unfinished. I will sincerely comply with the ongoing tax-related procedures. I will also humbly accept the final judgment made by the relevant authorities and take responsibility accordingly."

On January 27, Fantagio released a second statement. They said, "We feel a heavy responsibility for the controversy arising from matters related to our company and affiliated artist. The current issue is at the stage where facts are being verified according to the tax authorities' procedures, and both the agency and the artist are faithfully cooperating within the necessary scope." Fantagio added, "If legal and administrative judgments become clear in the future, we will responsibly take necessary actions based on the results. However, we earnestly request restraint from indiscriminate speculation, the spread of unverified information, and excessive overinterpretation regarding the claims and suspicions raised by some."


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