In the wake of his multi-million dollar tax scandal, Cha Eun Woo has lost endorsements for major brands.
On Thursday, January 22, The Chosun Daily reported that the True Beauty actor has found himself in a major legal trouble, as he has been accused of tax evasion worth over 20 billion won ($13.6 million).
Due to the shocking controversy, several brands have cut their ties with the Wonderful World star.
Soon after the scandal began gaining traction, Shinhan Bank archived all the commercials and images featuring Cha Eun Woo on its YouTube and social media handles.
Abib – famous Korean skincare brand – also deleted the singer’s ads.
“Industry insiders are closely watching other luxury brands Cha represents, including Saint Laurent, Calvin Klein, Norang Tongdak and LG Uplus, to see if they will follow suit,” reported ZapZee.
As per The Chosun Daily’s report, the 28-year-old South Korean singer and actor has been notified by the National Tax Service of a tax reassessment exceeding 20 billion won due to alleged income tax evasion, making it the “largest-ever tax reassessment imposed on a celebrity.”
The tax audit was conducted before the ASTRO star was enlisted in the mandatory military service last July.
Notably, last spring, the Seoul Regional Nation Tax Service launched a detailed investigation, similar to the tax cases against celebrities in the past.
According to the report, Cha Eun Woo’s mother has set up a company, A Corporation, which serves as a bridge between his talent agency, Fantagio, and him.
It has also been determined by NTS that A Corporation was a “paper company” that did not provide any services.
Reacting to the scrutiny, the My ID is Gangnam Beauty actor’s agency has stated, “We are currently gathering information and preparing a statement. We will announce our official position shortly.”
