The advertising industry is swiftly reacting to the tax evasion allegations surrounding Astro member and actor Cha Eun-woo, accused of evading taxes worth approximately 20 billion KRW (around $13.63 million USD). Major brands are distancing themselves by removing promotional materials featuring him.
Shinhan Bank has made all Cha Eun-woo-related advertisements and images on its YouTube channel and official social media accounts private as of the 22nd. Although no official statement has been released, the timing of this action, immediately following the controversy, has drawn attention.
Previously, Shinhan Bank had replaced actor Kim Soo-hyun with Cha Eun-woo as their model after Kim faced allegations of underage dating with the late Kim Sae-ron. This has led to discussions about the bank facing consecutive model-related risks.
Similarly, skincare brand Abib has taken comparable measures. Videos featuring Cha Eun-woo on their official YouTube channel have been made private, and related images on Instagram and other social media platforms have been deleted.
Abib had appointed Cha Eun-woo as their global ambassador in August last year. However, with the tax evasion allegations surfacing, the brand appears to be distancing itself.
The scale of the alleged tax evasion, reportedly amounting to around 20 billion KRW, has intensified the situation. This amount is considered unprecedented for an individual celebrity's tax evasion case.
According to a report on the 22nd, Cha Eun-woo was notified by the National Tax Service of a tax levy exceeding 20 billion KRW due to allegations of tax evasion. The agency believes Cha used a corporation under his mother's name to distribute income, thereby benefiting from a lower corporate tax rate instead of paying higher personal income taxes. The corporation is suspected to be a paper company that did not provide actual services.
In response, Cha Eun-woo's agency, Fantagio, stated on the 22nd, "The core issue is whether the corporation established by his mother is subject to actual taxation," adding, "The matter is not yet finalized, and we will actively clarify through legal procedures."
Reported by Kim Se-ah, TenAsia haesmik@tenasia.co.kr