Cha Ga-won, CEO of One Hundred, for whom police have requested an arrest warrant over allegations of fraud totaling approximately 30 billion won, has refuted the charges, stating, "This is merely a default on debt, not fraud."
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit requested an arrest warrant for CEO Cha on the 15th on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes. Additionally, according to the online media outlet The Fact, the police have also requested a travel ban for CEO Cha.
CEO Cha is accused of proposing a business utilizing the intellectual property (IP) of artists under her agency to the listed company Knomads, signing a contract, and receiving a 24.2 billion won advance payment without properly fulfilling the business obligations. It is reported that the police are investigating the case based on an estimated damage scale of around 30 billion won. Separately, fraud charges related to a 5 billion won jeonse (lump-sum housing lease) contract have also reportedly been applied.
In response, CEO Cha's legal representative, attorney Hyun Dong-yeop, argued through his YouTube channel, "The management crisis at One Hundred label was caused by external circumstances that occurred after the contract was signed," and refuted the fraud charges by claiming, "The essence of this matter is a civil dispute over settlements and default on debt, not a criminal case."
In particular, attorney Hyun stated, "For fraud to be established, there must be a causal relationship between the act of deception at the time of the contract and the act of disposing of assets." He argued, "At the time of the contract, Chairman Cha Ga-won had sufficient intent and ability to repay. She even provided joint surety regarding the advance payment contract and did not conceal assets; the properties were already under provisional seizure. It cannot be considered fraud simply because the management situation worsened afterward, leading to an inability to fulfill the debt."
Meanwhile, it is reported that the police are focusing on whether CEO Cha signed the contract and received the large advance payment while knowing that the business would be difficult to execute. The police have been conducting the investigation by consolidating the complaints filed by two companies, including Knomads, and a jeonse tenant identified as 'A'.
Separately, One Hundred, led by CEO Cha, and its affiliates have recently been embroiled in various controversies, including unpaid wages, failure to pay settlement funds, and disputes over exclusive contracts with their artists.
(SBS Entertainment News | Kang Kyung-youn)