He publicly apologized on social media, reflecting on his tax obligations.
His agency promised improvements in management but concerns continue to grow.
[TV Daily] Singer and actor Cha Eun-woo is embroiled in a tax evasion scandal amounting to 200 billion won, causing repercussions that extend beyond the advertising sector into the public domain. Despite multiple explanations and apologies from Cha Eun-woo and his agency, major brands are severing ties or deleting related content.
Recently, it was reported that SSG.com has made advertisements featuring Cha Eun-woo private on their official YouTube channel. This action is seen as a precaution against potential damage to the brand image due to the ongoing tax controversy. The advertising sector is witnessing a growing trend of ended partnerships with Cha Eun-woo, with various finance, fashion, and education brands also deleting related media.
The controversy began with a tax investigation by the Seoul Regional Tax Office last year. The tax office deemed that the corporation established by Cha Eun-woo was not providing actual services and unfairly reduced its tax liability, leading to the highest fines in history. In a recent social media apology, Cha Eun-woo reflected on his tax obligations, while his agency promised to revise their management system, though concerns are rising as the issue escalates.
The tax evasion allegations against Cha Eun-woo represent more than just personal accountability; they affect the trust and image between celebrities and brands. As seen in his apology, he reflects on his responsibilities as a public figure, trying to meet the expectations of fans and the public.
The advertising industry's 'cutting ties' phenomena significantly impacts Cha Eun-woo's image. Given his high profile, brands associated with him are vigorously managing their own images. This underscores the importance of risk management and image protection in future contracts.
Furthermore, this case poses a serious concern for the entertainment industry as a whole. How companies respond to similar incidents in the future will be crucial. They need to adhere to legal processes while establishing concrete measures to restore trust between artists and their fans.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: DB
