Fantagio Shares Slide Nearly 9% Amid Tax Evasion Allegations Involving Cha Eunwoo and Kim Seonho

Shares of Fantagio fell sharply on February 2 as investor sentiment weakened following a series of tax evasion allegations involving artists affiliated with the agency. The stock dropped more than 8 percent during morning trading, reflecting market concerns over potential reputational and regulatory risks.

Allegations Surrounding Kim Seonho

As of 11:13 a.m. KST, Fantagio was trading at 403 won, down 36 won, or 8.20 percent, from the previous session. The stock opened at 434 won before sliding as low as 391 won earlier in the day, marking one of its steepest intraday declines in recent weeks.

The immediate trigger for the stock’s decline was a report published the previous day alleging possible tax evasion involving actor Kim Seonho. According to the report, Kim has been operating a single member corporation separate from his agency, raising suspicions that the entity may function as a paper company. The media outlet suggested that the structure may have been used to reduce tax liabilities by channeling income through the corporation, implying potential tax avoidance or evasion. These claims quickly circulated online, prompting scrutiny from investors.

Fantagio responded by denying the allegations, stating that the single member corporation mentioned in the report was established for theater production and related activities. The agency emphasized that the entity was not created with the intention of tax evasion or deliberate tax avoidance.

Earlier Controversy Involving Cha Eunwoo

The situation has been further complicated by an earlier controversy involving ASTRO member and actor Cha Eunwoo. Last month, Cha was reported to be under investigation for alleged tax evasion amounting to over 20 billion won.

According to the report, Cha signed a management services contract with a corporation established by his mother, allowing him to be taxed under corporate tax rates, which are reportedly more than 20 percentage points lower than individual income tax rates. The corporation was described as a paper company, and the National Tax Service was said to have notified Cha of additional tax charges exceeding 20 billion won. At the time, neither Fantagio nor Cha Eunwoo confirmed the full details of the investigation, and the case remains subject to official review.

Market Reaction and Ongoing Uncertainty

With two high profile artists linked to tax related controversies in a short period, market confidence in Fantagio has visibly weakened. Analysts note that while allegations do not equate to confirmed wrongdoing, repeated exposure to such issues can heighten investor sensitivity, particularly for entertainment companies whose valuations are closely tied to artist reputation.