Accountant defends Cha Eun-woo after $9.6 mil. tax payment sparks debate

Cha Eun-woo / Xportsnews

The tax controversy surrounding K-pop star and actor Cha Eun-woo has drawn fresh attention after a practicing accountant stepped in to counter claims that his recent payment was a “loophole” or delayed compliance.

On April 9, attorney and certified accountant Kim Myung-gyu shared an analysis on social media aimed at “non-experts,” explaining the background behind reports that Cha paid 13 billion won (approximately $9.6 million) after facing tax evasion allegations.

Kim said public criticism has focused on “why the payment was made only now,” but argued that, if the reported amount is accurate, the sum should be understood not as unpaid taxes but as an additional levy imposed after review — and that the timing was part of a standard process, not a late payment.

“He did not fail to pay — he could not pay earlier,” Kim said, explaining that Cha had been undergoing a pre-assessment review with the National Tax Service, a procedure that allows taxpayers to challenge the validity of a tax claim before a formal notice is issued.

According to Kim, no official payment notice is sent until that review is completed. Only after the process concludes and the amount is finalized does the taxpayer receive a bill and proceed with payment.

Cha Eun-woo / Xportsnews

He added that once the notice is issued, failing to pay would result in late payment penalties. In many cases, taxpayers choose to pay first to avoid additional charges and then pursue further appeals through the Tax Tribunal or administrative litigation.

“This is not a tactic unique to any individual, but a common response,” Kim said.

The issue gained traction after Cha confirmed on April 8 that he had fully paid the amount assessed. In a public statement, he said, “As someone who has received so much love and support, I take this matter seriously and will not avoid responsibility.”

His agency Fantagio also said that part of the payment may later be adjusted through a tax refund process, adding that the actual burden is expected to be around 13 billion won.

This article from Xportsnews is adapted by a generative AI system and edited by The Korea Times.