Chaga Won Arrested on 30 Billion Won Fraud Charges: "Concern Over Destruction of Evidence"

Accused of Failing to Fulfill Business Commitments After Receiving Advance Payment

Chaga Won, Chairman of Piack Group and CEO of the entertainment agency One Hundred Label, has been arrested on charges of fraud amounting to around 30 billion won.

On August 3, Boodongsik, presiding judge in charge of warrants at the Seoul Central District Court, held a pre-arrest detention hearing for Chairman Cha, who faces charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. After the review, the judge issued an arrest warrant, citing concerns about possible destruction of evidence.

Chagawon, Chairman of Piak Group and CEO of the entertainment agency One Hundred Label, appeared at the Seoul Central District Court in Seocho-gu, Seoul on the 3rd for a pre-arrest warrant hearing. Photo by Yonhap News

Chairman Cha is accused of proposing a business utilizing the intellectual property (IP) rights of artists under his entertainment agency to Normus Co., Ltd., signing a contract, receiving an advance payment of 24.2 billion won, and then failing to fulfill the business agreement.

After the two-hour and forty-minute detention review, Chairman Cha left the Seoul Central District Court without answering questions from reporters, including what explanations he provided or whether he admitted to the charges.

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency believes that Chairman Cha entered into a separate contract with Normus without informing them that a contract signed with another company could not be terminated in the short term. Investigators also suspect that the contract was signed without any concrete preparations to carry out the business.

Separately, Chairman Cha is also accused of suggesting to an acquaintance that they enter into a jeonse (long-term lease) agreement on properties each of them owned, then receiving a deposit of 5.4 billion won and failing to follow through on the agreement.

This content was produced with the assistance of AI translation services.