Korea’s advertising industry is moving quickly to distance itself from singer and actor Cha Eun-woo after he became embroiled in a massive tax evasion controversy — an ironic turn given that he was recently brought in to replace another scandal-hit star.
On Jan. 23, promotional videos and image posts featuring Cha were switched to private across Shinhan Bank’s YouTube and other social media accounts. Cha had been serving as the bank’s advertising model.
The move came after reports surfaced that Cha is under investigation for alleged tax evasion totaling around 20 billion won ($15 million), prompting fallout across the advertising sector.
The situation has drawn particular attention because Shinhan Bank had previously dropped the actor Kim Soo-hyun as its model following a personal controversy, only to appoint Cha as his replacement. With both figures now linked to separate scandals, the bank has found itself caught in consecutive celebrity crises.
A day earlier, on Jan. 22, skincare brand Abib, for which Cha serves as an ambassador, also set his promotional video on its official YouTube channel to private, signaling a broader industry retreat.
According to reports, Cha was recently notified by South Korea’s National Tax Service of a tax reassessment. The amount under review is the largest tax claim ever reported involving a Korean celebrity, intensifying public scrutiny.
Cha’s agency Fantagio addressed the controversy, saying the core issue centers on whether a corporation established by Cha’s mother should be considered a taxable entity. The agency said the matter has not been finalized or formally confirmed and that it plans to actively explain its legal position on the interpretation and application of tax law.
This article from Xportsnews is adapted by a generative AI system and edited by The Korea Times.