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Cha Eun-woo's downfall is yet another warning for brands built around celebrity ambassadors

Published: 29 Jan. 2026, 08:00

Cha Eun-woo is pictured in an advertisement from 2024 for clothing apparel brand The North Face. [THE NORTH FACE]

Once fondly dubbed “face genius” by fans and the media, Cha Eun-woo became a favorite choice for advertisers promoting banks, cosmetics and other consumer brands. That image took a hit after he was accused of evading billions of won in taxes, forcing companies to pull advertisements featuring the singer and actor.

The episode is not an isolated case, with a string of similar controversies pushing companies to reassess celebrity endorsements as reputational risks come into sharper focus.

In Cha's case, the response was swift. In recent days, skincare brand Abib and fashion label Marithé François Girbaud have removed content featuring Cha from YouTube and social media. SSG.com, which appointed Cha as a model for its beauty business last year, has also set related promotional videos on its YouTube channel to private.

The tax evasion allegations stem from an investigation into a service company established by Cha’s mother, identified by her surname Choi. Tax authorities suspect the firm was used as a shell entity to shift income that should have been taxed at higher personal rates into a corporate structure subject to lower taxation. The National Tax Service's Seoul Regional Office investigation division conducted an intensive audit of Cha last year and notified him of additional taxes, including income tax, totaling about 20 billion won ($14 million), media outlet Edaily first reported.

Doctor Jung Hee-won, left, and the messages he allegedly sent to a woman who was serving as an assistant researcher. [SEOUL METROPOLITAN GOVERNMENT, LAW FIRM HYESEOK]

The case has underscored the vulnerability of consumer-facing brands that rely on celebrities to anchor their image. Insiders in the advertising industry say that once a model becomes entangled in legal or ethical controversy, even allegations can be enough to prompt companies to cut ties, fearing long-term damage that may outweigh the cost of ending a contract.

“Consumer advertising depends heavily on familiarity and trust,” said one industry official. “When a model’s personal controversy threatens to spill over into the brand itself, companies tend to act quickly.”

A line of Hetbahn instant cooked rice products previously sold on the CJ The Market website is pictured in this photo. The product was developed through a collaboration between CJ CheilJedang and doctor Jung Hee-won. [SCREEN CAPTURE]

The food and beverage sector offers recent examples of how quickly such risks can materialize. Late last year, CJ CheilJedang and Maeil Dairies partnered with Jung Hee-won, a doctor known for advocating food that for “slow aging” and a former professor of geriatric medicine at Asan Medical Center, to launch health-focused products.

After controversy emerged surrounding Jung’s private life, both companies moved to replace packaging that featured his name and likeness. Products already on shelves were discounted by as much as 55 to 64 percent to accelerate inventory clearance.

A Homeplus advertisement featuring actor Kim Soo-hyun is pasted at the entrance of the supermarket chain's branch in Seoul on March 13, 2025. [NEWS1]

Earlier cases still loom large in the industry’s collective memory. In March last year, actor Kim Soo-hyun vanished from advertising campaigns after allegations arose that he had dated the late actor Kim Sae-ron when she was a minor. Retailers including Homeplus and Shabu Allday removed online and offline promotional materials featuring Kim Soo-hyun, while the luxury brand Prada ended his role as a brand ambassador.

“When a model, used to build a company’s brand equity, becomes embroiled in social controversy, it can inflict lasting damage on the company’s image,” said Hwang Yong-sik, a professor of business administration at Sejong University.

“As AI-powered virtual models become more common, retailers will increasingly question whether to rely on human endorsers at all,” Hwang added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]