On the very day tax authorities ramped up pressure with an on-site audit, an LLC (referred to as Company A) founded by ASTRO member and actor Cha Eun-woo's mother abruptly moved its registered address from Ganghwa County, Incheon, to Gangnam District, Seoul. Within the same day, the corporate address change, the field inspection, Cha Eun-woo's public apology, and news of his law firm retention all broke back-to-back—fueling a fast-growing controversy.
According to Ilgan Sports on the 28th, Ganghwa County Office conducted an on-site inspection on the 26th of Company A, which had listed as its place of business the address of an eel restaurant on Ganghwado Island. The eatery, reportedly run by Cha's mother for about five years since around 2020, is currently closed after a remodel. Inspectors found no office furnishings or business facilities that would indicate actual office functions. Immediately after the inspection, Company A filed to transfer out of Ganghwa County, and on the same day its address change application was received and processed by the Gangnam District Office in Seoul. The registered address is now in Cheongdam-dong, Seoul.
Almost simultaneously, Cha Eun-woo released a written apology. Having stayed silent despite reports of a roughly ₩20 billion additional income tax assessment and controversy over the company under his mother's name, Cha wrote on his Instagram, "I'm reflecting on whether my stance toward my tax obligations has been sufficiently strict," bowing his head. Addressing claims that his military enlistment timing was meant to dodge scrutiny, he added, "It was absolutely not an intentional choice. I had no option but to enlist before the investigation procedures were concluded."
Earlier the same day, reports also stated that Cha retained Sejong, one of Korea's Big Five law firms. Sejong is known for strengths in tax and finance and recently bolstered its tax dispute capabilities by bringing on senior advisor Lim Sung-bin, a former commissioner of the Seoul Regional Tax Office. Because Lim previously served as director of Investigation Bureau 4 at the Seoul office—the unit that handled Cha's assessment—allegations of preferential treatment for former officials are now sparking debate.
Industry observers suggest this signals preparations for a full-fledged legal battle rather than a simple explanation. Many find it hard to call it coincidence that the law firm retention, apology release, on-site inspection, and corporate address change all happened virtually at the same time on the same day.
Company A reportedly signed service contracts related to Cha Eun-woo's entertainment activities and handled one axis of profit distribution. However, the National Tax Service is said to have deemed it a paper company with no substantive services performed. During this process, a large additional tax bill was imposed, and Cha is currently undergoing a pre-assessment review to contest the taxation.
His agency Fantagio added in a follow-up statement, "We are awaiting the tax authorities' determination and will responsibly carry out all necessary procedures once the results are finalized."