[비즈한국] As controversy over tax evasion by singer and actor Cha Eun-woo has emerged, the entertainment industry is focusing its attention on his agency, Fantagio032800. Fantagio is an affiliate of the Mirae ING007120 Group. Since the 2020s, the Mirae ING Group has acquired numerous entertainment companies, including Fantagio. However, most of these acquired entertainment firms are recording deficits. In particular, following the tax evasion controversy surrounding Cha Eun-woo, Fantagio’s stock price has plummeted, leading to discussions about the worst-case scenario of potential delisting.
The Mirae ING Group acquired Fantagio in 2021. The acquisition was structured through Mirae ING Group affiliate Artist Cosmetic (now Artist) purchasing a 6.30% stake in Fantagio, and Mirae ING securing an 8.39% stake through a paid-in capital increase. The total cost spent by the Mirae ING Group at the time for management control of Fantagio was around 15.6 billion KRW.
At the time of the acquisition by Mirae ING Group, Fantagio was not a particularly notable entertainment company. According to its business report, Fantagio recorded 16.4 billion KRW in revenue and an operating loss of 700 million KRW in 2020. Even then, Cha Eun-woo was active under Fantagio, but it was difficult to say that its performance was particularly outstanding.
Fantagio’s revenue increased after being acquired by the Mirae ING Group. Revenue for the 2024 fiscal year (July 2023 to June 2024) was 72.3 billion KRW. Although revenue for the 2025 fiscal year (July 2024 to June 2025) decreased to 38.2 billion KRW compared to the previous year, it remains a high figure compared to the early 2020s.
What stands out is that the Mirae ING Group has been active in mergers and acquisitions (M&A) of entertainment companies since the 2020s. The Mirae ING Group acquired Humasis205470 in 2023, and Kyongbo Pharmaceutical053950 and Billions in 2024, and recently acquired Ascendio012130. Among these, Billions and Ascendio are entertainment companies. Humasis was originally a medical device-related company, but as it became the entity acquiring Billions, it is having an indirect impact on the Mirae ING Group's entertainment business. Kyongbo Pharmaceutical previously held entertainment firms like Enter Partners and KN Entertainment but has since divested them.
The problem is that most of the entertainment companies acquired in this manner are recording deficits. Cha Eun-woo’s agency, Fantagio, recorded an operating loss of 8 billion KRW in the 2025 fiscal year, and suffered an additional 900 million KRW in operating losses from July to September 2025. Billions and Ascendio also recorded operating losses of 800 million KRW and 3.2 billion KRW, respectively, in the first three quarters of last year. Humasis, the parent company of Billions, is also in a poor situation overall for the Mirae ING Group, having recorded an operating loss of 7.2 billion KRW in the first three quarters of last year. For now, they are holding on by issuing corporate bonds and selling assets since the deficit is not yet massive, but it is difficult to expect a bright future if deficit management continues.
Amidst this, concerns regarding the Mirae ING Group are mounting due to the emerging tax evasion allegations against Cha Eun-woo. Given that image management is crucial in the entertainment industry, this allegation is expected to act as a significant constraint on Cha Eun-woo’s activities. The investigation related to Cha Eun-woo is reportedly said to have started during the tax investigation process of Mirae ING Group Chairman Namkung Gyeon. Chairman Namkung Gyeon is also in a situation where it is difficult to be free from criticism.
Fantagio stated in an official position, "The main issue in this case is whether the entity established by Cha Eun-woo's mother is subject to actual taxation," adding, "Nothing has been finalized or formally notified yet, and we plan to actively clarify the issues related to legal interpretation and application in accordance with due process."
Fantagio’s troubles do not end here. Allegations of tax evasion have also recently been raised against Fantagio actor Kim Seon-ho. Allegations emerged that Kim Seon-ho established and utilized a private entity for the purpose of tax evasion. In response, Fantagio explained, "The one-person entity (of Kim Seon-ho) was established for play production and theater-related activities and was never established for the purpose of intentional tax savings or evasion," adding, "However, since transferring to Fantagio, no actual business activities have taken place for over a year, and we are currently in the process of closing the business according to relevant laws and procedures."
The problem arises if Fantagio fails to recover its performance. The Mirae ING Group has invested tens of billions of KRW in the acquisition and capital increase of Fantagio. Currently, the number of Fantagio shares held by Mirae ING Group affiliates is 10,717,579 shares (a 23.32% stake). Since the tax evasion allegations involving Cha Eun-woo surfaced, Fantagio’s stock price has plummeted. Fantagio’s stock price was in the 500 KRW range at the end of last year, but closed at 401 KRW on the 2nd. Simply calculating the value of the Fantagio shares held by Mirae ING Group affiliates at the current market price, it is around 4.3 billion KRW.
In the worst-case scenario, the possibility of Fantagio’s delisting cannot be ruled out. This is because the Korea Exchange has increased the market capitalization requirement for KOSDAQ delisting from 4 billion KRW to 15 billion KRW starting this year. If a KOSDAQ stock maintains a market capitalization of less than 15 billion KRW for 30 consecutive trading days, it is designated as an administrative issue. If it fails to exceed 15 billion KRW in market capitalization for 90 trading days after being designated, it will be delisted. As of the closing price on the 2nd, Fantagio’s market capitalization is 18.4 billion KRW.
Evaluations of Chairman Namkung Gyeon are sharply divided between an "M&A expert" and a "corporate raider." Chairman Namkung has historically acquired distressed companies, grew them, and then resold them to make a profit. In the process, he has also faced criticism from employees for carrying out restructuring. In Fantagio’s case, there are no signs of recovery from the deficit, and public opinion has worsened, so a future resale is not expected to be easy. In the current atmosphere, it is also difficult to expect support from Mirae ING Group affiliates. However, the Mirae ING Group has not officially mentioned a resale of Fantagio.
The stock prices of Billions and Ascendio have also been on a downward trend recently. This indicates that expectations for the Mirae ING Group’s entertainment business are similarly low. While Chairman Namkung Gyeon has had a high profile as a "big player" in the M&A market, he has not shown clear results in the entertainment business sector.