The unblemished “model student” image of actor and ASTRO member Cha Eun-woo has been severely shaken as he faces the largest tax reassessment ever sought from an individual South Korean celebrity.
According to recent reports from The Korea Herald and OSEN, the actor is currently embroiled in an investigation by the National Tax Service (NTS) involving an alleged tax shortfall of 20 billion won (approx. $13.8 million).
This financial scandal has sent shockwaves through the industry, putting Netflix’s highly anticipated 1999-set superhero drama, The WONDERfools, at the center of a brewing public backlash.
The Paper Company at the “Eel Restaurant”
The controversy centers on a high-intensity investigation by the NTS’s Seoul Regional Office, specifically the elite Investigation Bureau 4, which typically handles significant corporate tax evasion cases.
Authorities allege that Cha Eun-woo and his mother established a “shell entity”-referred to as Company A- to split the actor’s professional income and avoid the top personal income tax rate of 45%.
By funneling earnings through this company, the income was reportedly taxed at a corporate rate over 20 percentage points lower.
Suspicion intensified when investigators discovered the paper company’s registered address was an eel restaurant on Ganghwa Island- a business previously operated by the actor’s parents-which had no substantive entertainment-related operations.
The NTS concluded that the entity provided no actual services to his agency, Fantagio, which was itself assessed 8.2 billion won in taxes for using what were deemed “fraudulent” tax invoices from the shell company.
Netflix’s Dilemma: Release Plans Amid Backlash
While the scandal unfolds, public focus has shifted to Netflix’s original series The WONDERfools, where Cha Eun-woo stars alongside Park Eun-bin.
As of February 2026, the streaming giant is facing a wave of criticism over its perceived decision to proceed with the series despite the ongoing legal probe.
Initial reports suggested a firm release date of May 15, leading to online outrage and calls for the show to be postponed until the investigation is finalized.
In response to the mounting pressure, a Netflix spokesperson clarified:
“‘The WONDERfools’ is only confirmed to be released in the second quarter of this year. The claim that the release date is set for May 15 is not accurate.”
While the platform is still discussing the exact timing, they confirmed the series remains on the 2026 lineup, which has further fueled the debate.
Critics argue that releasing the drama now would be insensitive to public sentiment, especially since major brands like Shinhan Bank and skincare brand Abib have already begun scrubbing Cha Eun-woo’s promotional content from their platforms.
Military Service and the “Strategic Enlistment” Rumors
Adding another layer of complexity to the backlash is the timing of Cha Eun-woo’s military service.
The actor enlisted in the Army Military Band in July 2025, shortly after the high-intensity probe began.
Reports have surfaced alleging that the NTS delayed sending the formal audit notice until after his enlistment at his specific request- sparking rumors of a “strategic enlistment” designed to avoid the immediate heat of a media trial.
Addressing the controversy from the military, Cha Eun-woo posted a personal apology:
“Currently, I am serving in the military, but this was by no means an intentional choice to avoid this controversy.”
He explained that he could no longer postpone his duties and vowed to “faithfully participate in the tax-related procedures that will proceed in the future.”
Despite his apology, the case remains unresolved. If the NTS determines there was “active manipulation” or intent to evade, the civil dispute could escalate into a criminal trial.
Under Korean law, evading taxes exceeding 1 billion won can carry a minimum five-year prison sentence.
For now, the “Face Genius” remains in a legal limbo that threatens to overshadow his final acting project before his expected discharge in early 2027.
