Cha Ga-won of One Hundred Denies 30 Billion Won Fraud Allegations, Claims 'Simple Default'

Cha Ga-won, CEO of One Hundred, for whom police have requested an arrest warrant over allegations of fraud amounting to approximately 30 billion won, has refuted the charges, stating, "This is merely a case of default, not fraud."

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit requested an arrest warrant for CEO Cha on June 15 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 an exit ban for CEO Cha.

CEO Cha is accused of failing to properly execute a business contract after receiving a 24.2 billion won advance payment from the listed company Nomus, which had agreed to a deal involving the intellectual property (IP) of artists under Cha's agency. It is reported that the police are conducting an investigation based on an estimated total damage of around 30 billion won. Separately, it is reported that fraud charges related to a 5 billion won jeonse (lump-sum housing lease) contract have also been applied.

In response, Cha's legal representative, attorney Hyun Dong-yeop, argued through his YouTube channel, "The management difficulties of the One Hundred label were caused by external circumstances that occurred after the contract was signed." He refuted the fraud allegations, claiming, "The essence of this matter is a civil dispute over settlement and default, 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 property." He further argued, "At the time of the contract, Chairman Cha had sufficient intent and ability to repay. He provided a joint guarantee regarding the advance payment contract and did not conceal assets. The situation where property was under provisional seizure, followed by a deterioration in management conditions that led to an inability to fulfill the debt, cannot be viewed as fraud."

Meanwhile, it is reported that the police are focusing their investigation on whether CEO Cha signed the contract and received the large advance payment despite knowing that the business would be difficult to execute. The police have been conducting a consolidated investigation into complaints filed by two companies, including Nomus, 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.

(Reported by Kang Kyung-yoon, SBS Entertainment News)
※ Please note: This article was translated by AI and may contain errors.