Reportedly, Fantagio Entertainment is in some serious financial trouble. Now that singer and actor Cha Eun Woo is fulfilling his mandatory military service, Fantagio has lost their biggest money maker and are struggling to generate enough revenue to sustain operations.
A Company on the Brink
Industry reports claim that Fantagio owes ₩8.2 billion KRW (about $6 million USD) in taxes by October. Another ₩13 billion KRW (roughly $9.35 million USD) in bonds matures in November. If investors don’t convert those bonds to stock, the company will have to pay out in cash. With Fantagio’s stock price being so low (as of this article, it’s sitting at ₩503KRW or $0.36 USD), they probably don’t have enough.
Another problem Fantagio has is that the company only has about ₩11 billion KRW (around $8 million USD) on hand. That’s less than half of what they need in the next few months. The math is ugly, and it’s about to get worse.
Losing Their Lifeline
Cha Eun Woo is Fantagio’s biggest money maker. Acting in K-Dramas, endorsement deals, music activities. If it had Eun Woo’s face on it, it kept Fantagio’s lights on.
Securities filings from 2023 and 2024 show that one artist (most likely him) accounted for more than 50% of the company’s total revenue. Yet, even his star power wasn’t enough. Fantagio raised billions of KRW in 2021 and again in 2024 through rights offerings, promising to fund new dramas and albums. However, these capital injections failed to deliver successful projects for the entertainment agency.
Eun Woo is expected to be discharged on January 27th, 2027. Not even a full month into his service, the company is in danger because they were overly reliant on a single star.
Failed Break into K-Drama Production
Fantagio saw this problem coming and tried to build an alternate source of revenue.
The company’s flagship project, Uinyeo Dae Jang Geum, was supposed to be a prestige historical drama that would carry Fantagio into their next phase. They poured ₩15.1 billion KRW, three quarters of the show’s budget, into development. They tapped Lee Young-ae to reprise her role of Jang Geum, hoping to tap into the legacy of Jewel in the Palace.
Instead, the project stalled. Script disputes, shaky funding, and a fight over intellectual property rights derailed momentum. The original Jewel in the Palace screenwriter Kim Young-hyun publicly denied Fantagio’s claim that it was a sequel, which killed hype and scared off broadcasters. By August 2025, the show still doesn’t have a network, streaming partner, or an air date. Fantagio sunk millions into a black hole that hasn’t paid out a single won.
A Denial No One Buys
Fantagio insists it’s not in a liquidity crisis. They say they can liquidate assets, they’re challenging tax assessments, and they’ll handle bond repayments. Industry insiders aren’t convinced. Years of operating losses, failed projects, and overreliance on one idol don’t inspire confidence.
Even fans see through it. When Fantagio rushed to court other actors, like Kim Seon Ho, to “prepare for Eun Woo’s absence,” the reaction was blunt. You can’t replace half your revenue with a single signing.
The Bigger Issue
Fantagio’s struggles reveal a larger truth about the entertainment industry: an agency can’t pin its survival on one superstar. When that person leaves, whether for military service, contract disputes, or personal reasons, the entire house of cards collapses.
Cha Eun Woo is only one month into his 18 month enlistment period. Whether Fantagio decides to debut new talent, restructure their crushing debt, or finally launch a successful drama, one thing is clear. Survival requires more than just waiting for Cha Eun Woo to resume his idol activities.
