Cha Eun Woo files tax appeal after paying USD 9.5M in disputed tax assessment

02 Aug 2026, 02:58 by hjang · allkpop

Cha Eun Woo has filed a tax appeal after fully paying approximately USD 9.5 million (KRW 13 billion) in taxes imposed by the National Tax Service (NTS), arguing that the assessment was unfair.

According to reports on August 2, Cha Eun Woo submitted a tax appeal to the Tax Tribunal in early July, shortly before the 90-day deadline for filing an objection after receiving the tax assessment notice.

His agency, Fantagio, stated, "Cha Eun Woo filed the tax appeal in accordance with the procedures provided by law in order to receive a legal review. As the matter is currently ongoing, we cannot comment on specific details."

The controversy surrounding Cha Eun Woo's taxes first emerged in January, when reports claimed that he had been investigated by the NTS over allegations that he underreported income through a one-person agency established under his mother's name.

The NTS reportedly determined that the company, which listed Cha Eun Woo as its only artist, did not provide actual entertainment-related services and classified it as a "paper company." The tax authority subsequently issued an initial assessment estimated at approximately USD 14.6 million (KRW 20 billion).

Cha Eun Woo's side reportedly filed a pre-assessment review request before the final assessment was issued, but the request was rejected. Following adjustments including those related to double taxation, the final assessed amount was reduced to approximately USD 9.5 million (KRW 13 billion), which he paid in full in April.

At the time, Cha Eun Woo, who is currently serving in the military, addressed the issue through social media, saying, "I respect the NTS' procedures and decision, and I have paid all related taxes so that further confusion does not continue. I will faithfully cooperate with the remaining procedures."

However, his subsequent tax appeal has reignited controversy. While Cha Eun Woo previously stated that he respected the NTS' decision and would cooperate with the remaining procedures after paying the assessed amount, his decision to seek a review of the tax assessment has led some to question whether his actions are consistent with his earlier statement.

Cha Eun Woo is believed to have paid the assessed amount before filing the appeal to avoid additional late payment charges. If the USD 9.5 million (KRW 13 billion) tax bill had remained unpaid, late payment charges of more than USD 2,000 (KRW 2.8 million) would have accumulated every day. By paying first, he was able to prevent additional charges while preserving his right to challenge the assessment.

Reactions from tax industry officials have been mixed. One industry source said, "Filing an appeal is a legitimate right of a taxpayer. Even after payment, an appeal can be submitted if additional evidence or legal arguments support the claim that the assessment was improper."

Online reactions have been largely negative. Many criticized Cha Eun Woo for filing an appeal after previously apologizing and paying the assessed taxes, questioning why he sought to challenge the assessment after saying he respected the NTS' decision. Some also expressed disappointment, saying the appeal appeared inconsistent with the stance he had previously presented.

The Tax Tribunal's final decision is expected after Cha Eun Woo completes his military service. Cases involving large-scale domestic tax claims often take more than a year to reach a conclusion.

If the Tax Tribunal rules in Cha Eun Woo's favor, he could receive a refund of the taxes already paid. If the appeal is dismissed, he may pursue further legal action through administrative litigation.

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