Cha Eun-woo, Kim Seon-ho projects at risk over tax scandals

Actor Cha Eun-woo in a scene from the upcoming Netflix series "The Wonderfools” / Courtesy of Netflix

Actors Cha Eun-woo and Kim Seon-ho are facing mounting pressure as allegations of large-scale tax evasion through family-run corporations threaten to derail their upcoming projects.

The two stars, both represented by the agency Fantagio, have come under scrutiny for allegedly using shell companies to reduce their tax burdens, leading to concerns that their highly anticipated dramas may face significant delays or cancellations.

Cha allegedly faces a tax bill of over 20 billion won ($13.8 million) after the National Tax Service investigated a company established by his mother. Tax authorities reportedly viewed the firm as a paper company created to split Cha's earnings and apply lower corporate tax rates instead of the much higher individual income tax. The impact is already affecting his career, with several brands removing his advertisements. Cha is currently serving in the military.

The controversy is casting a dark shadow over the Netflix original series "The Wonderfools,” which stars Cha alongside Park Eun-bin, known for her 2022 drama "Extraordinary Attorney Woo." Although the series was scheduled to be released in the first half of this year, concerns are increasing that the negative public sentiment could force the streaming platform to reconsider its release.

Similarly, Kim is embroiled in a controversy involving a one-person corporation registered under his home address in Seoul. The actor is accused of listing his parents as executives and paying them high salaries while using corporate credit cards for personal expenses.

Actor Kim Seon-ho in a scene from the upcoming Disney+ series “Portraits of Delusion” / Captured from Disney+ Korea’s YouTube

The allegations against Kim have put several major productions at risk. He is currently set to lead Tving series "Unfriend," tvN series "May the Congressman Protect You" (tentative) and Disney+ series "Portraits of Delusion."

Among the platforms, Disney+ is particularly sensitive to such risks, as seen in its recent decision to postpone the release of "Knock-Off" following a controversy involving actor Kim Soo-hyun last year.

The industry view is that the timing of the allegations is particularly damaging because many of these projects have already completed filming or are in the final stages of production.

On Wednesday, Fantagio released a statement to say that Kim is taking full responsibility for the situation surrounding his private corporation.

"The corporation was established in January 2024 for his acting, particularly stage activities, and Kim received payments through the entity until he signed with Fantagio in February 2025. After realizing that the operation could be misunderstood, he halted all activities through the company for more than a year and has already completed the payment of additional individual income taxes on top of the previously paid corporate taxes," Fantagio said, adding that the actor returned all corporate assets and is currently finalizing the legal closure of the firm.