Entertainment Pick: CEO Faces Arrest Warrant Over 24.2 Billion Won Fraud Allegations, Denies Wrongdoing

The police have requested an arrest warrant for Cha Ga-won, CEO of One Hundred, who is facing allegations of fraud involving over 30 billion won.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit recently filed for an arrest warrant with the Seoul Central District Prosecutors' Office against CEO Cha on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.

Cha is accused of receiving 24.2 billion won in advance payments from the listed company Nomus by leveraging the intellectual property rights of affiliated entertainers.

The police have concluded that despite receiving a massive sum of money in advance, Cha failed to properly execute the promised business projects.

The total scale of damages identified by the police so far amounts to approximately 30 billion won.

During the investigation, it is reported that the police focused on whether Cha signed the contracts without fully disclosing existing contractual relationships.

Separately, Cha is also facing fraud allegations related to a 5 billion won "jeonse" (lump-sum housing lease) contract.

The police raided Big Planet Made Entertainment, a subsidiary of One Hundred, in April and summoned Cha for questioning as a suspect last month.

However, Cha has completely denied the allegations.

Cha's side rebutted the move, stating, "It is regrettable that an arrest warrant was requested while we have even filed a quasi-appeal over the illegality of the search and seizure process," adding, "We question whether the investigative agency has properly grasped the legal principles and facts."

One Hundred and its affiliates, led by Cha, have been embroiled in controversy since the end of last year over issues regarding the payment of settlements to affiliated artists, including Baekhyun, Taemin, Lee Mu-jin, Lee Seung-gi, Viviz, and The Boyz.

Some artists have taken legal action citing non-payment and the failure to provide accounting records, and disputes over exclusive contracts are ongoing.

Furthermore, issues regarding unpaid fees to small-scale partner companies, such as clothing suppliers and content production firms, have surfaced, and allegations of unpaid wages for employees have also been raised.

The Ministry of Employment and Labor has recently launched a full-scale inspection of One Hundred and its affiliates regarding potential wage arrears.

Reported by Kang Kyung-yoon | Video by Jung Yong-hee | Graphics by Lee Jung-ju | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.