Mon Jan 26 06:40:00 UTC 2026: ### Cha Eun-woo Faces Advertising Fallout Amidst Tax Evasion Allegations

The Story:
South Korean singer and actor Cha Eun-woo is facing a rapid decline in advertising deals following allegations of tax evasion totaling around 20 billion won ($15 million). Shinhan Bank, which had recently appointed Cha as its advertising model after dropping Kim Soo-hyun due to a personal controversy, has already made promotional videos and image posts featuring Cha private. Similarly, skincare brand Abib has also removed his promotional video from its official YouTube channel, signaling a broader industry retreat.

Key Points:

  • Cha Eun-woo is under investigation for alleged tax evasion of approximately 20 billion won ($15 million).
  • Shinhan Bank, previously embroiled in controversy after dropping Kim Soo-hyun, replaced him with Cha, only to face another scandal.
  • Skincare brand Abib has also removed Cha’s promotional video.
  • Cha’s agency, Fantagio, claims the issue revolves around the taxable status of a corporation established by Cha’s mother and plans to address the legal interpretation of tax law.
  • The National Tax Service notified Cha of a tax reassessment.

Key Takeaways:

  • The South Korean advertising industry is highly sensitive to celebrity scandals, particularly those involving financial impropriety.
  • Companies are quick to distance themselves from celebrities facing allegations, even before formal confirmation or legal resolution.
  • The Shinhan Bank case highlights the risk associated with celebrity endorsements and the potential for successive crises.
  • The amount of tax reassessment faced by Cha Eun-woo is the largest ever reported involving a Korean celebrity.
  • The legal status of business entities established by family members of celebrities can trigger tax controversies, requiring clarity on the interpretation and application of the tax law.

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