Cha Eun-woo, facing 20 billion won tax bill, hires top law firm Shin & Kim for full-scale response

\r\n
[Financial News] Singer and actor Cha Eun-woo, who has been notified of an additional tax bill of 20 billion won, has retained Shin & Kim, one of Korea’s top five law firms, and filed a pre-assessment review. A pre-assessment review is a procedure that allows a taxpayer to challenge a tax authority’s decision before the assessment is finalized.
According to legal sources on the 27th, Cha Eun-woo recently requested a pre-assessment review against the National Tax Service (NTS). In particular, Shin & Kim’s tax law team has agreed to represent Cha Eun-woo in this case.
Shin & Kim has strengthened its expertise in tax matters, including bringing in former Seoul Regional Tax Office Commissioner Lim Seong-bin last year. In 2022, it launched the Tax Criminal Investigation Response Center and added several former prosecutors with extensive experience in tax-related cases.
Investigation Bureau 4, NTS Seoul Regional Office, conducted an intensive tax audit of Cha Eun-woo last year and notified him of an additional income tax assessment exceeding 20 billion won. This is reportedly the largest additional tax ever imposed on a Korean entertainer.
The NTS has focused on the structure of Cha Eun-woo’s income. A company referred to as A, established by Cha’s mother, Ms. Choi, and his agency Fantagio signed a service contract, ostensibly to support his entertainment activities. Revenue generated by Cha Eun-woo was then distributed among Fantagio, Company A, and Cha Eun-woo personally.
The NTS concluded that Company A was effectively a paper company that did not provide substantial services. It determined that income that should have been attributed to Cha Eun-woo personally was diverted to the company to avoid the top marginal income tax rate of up to 45 percent and instead benefit from the comparatively lower corporate tax rate.
Cha Eun-woo’s side, however, is strongly contesting this conclusion. Fantagio added, "Cha Eun-woo will continue, as a responsible member of the public, to faithfully fulfill all his legal obligations, including tax filings."
gaa1003@fnnews.com Reporter An Gaeul Reporter