Korea’s advertising industry is taking swift action to distance itself from popular singer and actor Cha Eun-woo amid his involvement in a significant tax evasion controversy. This development is particularly notable as Cha was recently appointed to replace another celebrity, Kim Soo-hyun, who faced his own scandal.
On January 23, promotional videos and image posts featuring Cha were made private on Shinhan Bank’s YouTube and social media outlets, where he had been an advertising model. This decisive move follows reports that Cha is being investigated for alleged tax evasion amounting to approximately 20 billion won (around $15 million), leading to repercussions throughout the advertising sector.
The situation is drawing considerable attention because Shinhan Bank had previously terminated its association with Kim Soo-hyun due to his own personal controversies before bringing Cha onboard. Now, with both actors entangled in scandals, the bank finds itself navigating back-to-back public relations challenges.
Furthermore, on January 22, skincare brand Abib, for which Cha serves as an ambassador, also set his promotional content to private on its official YouTube channel, reflecting a wider retreat within the industry regarding his image.
Reports indicate that Cha has been alerted by South Korea’s National Tax Service about a tax reassessment, marking this case as the largest tax claim involving a Korean celebrity to date, which has amplified public scrutiny on the matter.
Cha’s agency, Fantagio, has responded to the unfolding situation, explaining that the central issue revolves around whether a corporation established by Cha’s mother qualifies as a taxable entity. The agency stressed that the matter has not been finalized and it intends to provide a robust explanation of its legal standing concerning the interpretation and application of tax law.
This scenario highlights the precarious nature of celebrity endorsements in the advertising world and raises questions about how swiftly brands reassess their associations in light of public controversies.