Singer and actor Cha Eun Woo - who has long been built into the image of a "star with a perfect image" of Kpop - is facing an increasing wave of consequences after being involved in tax evasion allegations of 20 billion won (nearly 360 billion VND).
Although the tax arrears has not yet been finalized, the case has begun to spread in the advertising industry and raise concerns about his upcoming projects.
Some brands that Cha Eun Woo is modeling for have quietly created a distance with the male artist.
French fashion brand Marithé François Girbaud previously continued to deploy advertisements featuring Cha Eun Woo when his scandal just exploded. But after the actor's post on the evening of January 26, this brand switched images and videos featuring Cha Eun Woo to private mode on official social media accounts.
Previously, the skincare brand Abib and South Korea's largest commercial bank Shinhan Bank also removed posts featuring Cha Eun Woo.
No brand has given a public explanation for these moves. However, they took place after tax evasion suspicions flared up, causing industry observers to believe that these are preventive measures to avoid reputation risks.
If the 20 billion won tax arrears of Cha Eun Woo is confirmed, this will be the largest additional tax arrears ever applied to an entertainment artist in Korea.
According to standard advertising contracts, businesses have the right to terminate the contract and request compensation if the model degrades the brand value.
In tax-related cases - which are particularly sensitive in South Korea - some people in the industry even predict that the total fine, including contract violation fees and production cost refunds, could be up to 1,000 billion won if intentional tax evasion is legally confirmed.
Controversy is also spreading to the entertainment content production sector. Recently, Cha Eun Woo has completed filming a new Netflix series called "The Wonderfools" before enlisting. More and more questions are being raised about whether the film can be released on schedule in the second quarter of this year.
The incident also reignited public discontent with the income structure in the entertainment industry for a long time. Comparisons circulating online show that 20 billion won is equivalent to a worker earning 3 million won per month having to save all income for 555 years.
With an annual interest rate of 3%, this amount can generate 600 million won in interest each year, and you must win the lottery jackpot 10 times in a row to achieve the same number.
Cha Eun Woo's management company Fantagio spoke out in a statement: "The issue currently being raised is in the stage of truth verification according to the tax authorities' procedures, and both the management company and the artist are sincerely cooperating within the necessary scope.
