"Selling His Ferrari Could Cover Debts to Small Businesses": Cha Ga-won Faces Second Statement from Former Employees

Controversy continues to surround Cha Ga-won, Chairman of One Hundred Label, who recently had an arrest warrant requested by police—and subsequently returned by the prosecution—over allegations of fraud involving tens of billions of won. Former and current employees of his affiliated companies have stepped forward to demand the payment of unpaid wages and an official apology.

The "Group of Affected Employees from Three Companies," consisting of former and current staff from One Hundred Label, Big Planet Made Entertainment, and INB100, issued a second statement on June 18, stating, "Thanks to the interest many have shown in our situation, Cha Ga-won has begun paying wages to the staff."

However, they argued, "While we can finally breathe a sigh of relief, there are still unresolved issues. Dozens of employees across the three companies have yet to receive their wages, and the mandatory social insurance premiums for staff remain in arrears."

They continued, "For the employees, surviving day by day after months of unpaid wages has been a struggle. Cha Ga-won must immediately pay the remaining wages to all staff and settle all overdue social insurance premiums." They further claimed, "Chairman Cha Ga-won demanded letters of non-punishment in exchange for paying the overdue wages, and this continued even after employees resisted and issued a statement under the name of the 'Group of Affected Employees from Three Companies'."

They emphasized, "Wages should not come with any conditions. The responsibility for the current situation lies entirely with Cha Ga-won himself. The first step is to pay the overdue wages, and the second is to offer a sincere apology to the employees."

The group also urged the Ministry of Employment and Labor to conduct a swift and thorough investigation. The Seoul Gangnam District Office of the Ministry of Employment and Labor began a comprehensive investigation into the wage arrears at One Hundred Label and its affiliates in May.

They stated, "We understand that tens of billions of won in company funds were transferred to Cha Ga-won personally or to his related companies. The damage has been borne entirely by those who trusted Cha Ga-won and the companies. Employees have not been paid, and artists left the companies after failing to receive settlements for a long period. Among the vendors who have not been paid are many small businesses, such as dry cleaners."

They added, "Among the victims, there is even self-deprecating talk that 'selling just one of Cha Ga-won's Ferraris would be more than enough to pay off the debts to the dry cleaners.' Given the current situation, we expect the damage to grow even further."

Meanwhile, the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit recently requested an arrest warrant for Chairman Cha on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, but the prosecution returned the warrant, requesting further investigation. The police are investigating allegations that Chairman Cha received large sums of advance payments related to artist IP businesses but failed to fulfill the contracts.



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