The financial troubles of Onehundred’s subsidiary labels Big Planet Made and INB100―together employing around 100 staff―have surfaced. Concerns are rising after reports of unpaid social insurance, overdue operating costs, and delayed artist payments all at once.
On February 12, The Fact reported that the labels under Onehundred have failed for months to pay employees’ four major insurances (national pension, health, employment, and industrial accident) and retirement pensions, with even office rent in arrears. According to the report, managers’ corporate cards have been suspended, forcing them to cover schedule expenses and fuel costs out of pocket, and the company is being pressed to return leased vehicles over missed payments.
In response, CEO Cha Ga-won, who heads the labels, pushed back on talk of a cash crisis, saying the “verification process was simply delayed.” Cha’s side told The Fact that unpaid insurance and pension contributions would be settled soon and that issues with managers’ expenses and corporate cards were being addressed.
However, reporting by SBS Entertainment News indicates the internal situation differs from that explanation. According to people close to affiliated artists, payments for artist income have been delayed since last year and remain unpaid into the new year, on top of staff welfare concerns.
“One of our artists is still promoting, but payments aren’t being made,” said one source. “As managers keep fronting costs themselves on site, anxiety is growing. It’s not just one person―multiple affiliated artists haven’t been paid.”
Meanwhile, The Fact also reported that an entertainment-tech Company A has filed a complaint accusing CEO Cha of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. Cha’s side countered that the collapsed collaboration was Company A’s fault, adding there was no illegal or improper use of an advance payment. They also claimed Cha injected personal funds into the company exceeding the advance and would prove this legally.
(SBS Entertainment News | Kang Kyung-youn)