Prosecutors Detain and Indict One Hundred Label CEO Cha Gawon on 30 Billion Won Fraud Charges
Received 24.2 Billion Won Advance for Artist IP Project
Also Accused of Embezzling 5.4 Billion Won in Lease Deposits
Cha Gawon, CEO of the entertainment agency One Hundred Label, which previously managed idol group The Boyz and singer Lee Seung-gi, has been indicted on fraud charges involving approximately 30 billion won.
According to the legal community on the 26th, the Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Yong Taeho) detained and indicted CEO Cha the previous day on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
Cha is accused of receiving a 24.2 billion won advance payment from Nomers Co., Ltd. after proposing a business project utilizing the intellectual property (IP) of affiliated artists, but failing to carry out the actual business.
Separately, he also faces charges of entering into a promise with an acquaintance to execute a global lease contract on their respective properties, receiving a security deposit of 5.4 billion won, but ultimately neglecting to fulfill his contractual obligations.
Previously, the Financial Crime Investigation Division of the Seoul Metropolitan Police Agency detected circumstances suggesting that Cha had engaged in so-called “debt rolling” with large amounts of borrowed money, and filed for his arrest warrant twice in June. The prosecution returned both requests, asking for a supplementary investigation.
After further investigation involving account tracing and contract analysis, the police submitted a third request for an arrest warrant on July 22. The prosecution accepted it and requested the warrant from the court. On August 3, the Seoul Central District Court issued a detention warrant for Cha, citing concerns over evidence destruction.
Cha, who was previously chairman of a real estate development company, co-founded One Hundred Label with singer MC Mong in 2023. Since MC Mong left the company in July 2023, Cha has been running the business alone.
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Recently, disputes have also arisen between One Hundred Label and its artists. The Boyz, Lee Seung-gi, Lee Mujin, Viviz, EXO members Chen, Baekhyun, and Xiumin (ChenBaekXi), as well as TV personality Kim Daeho, have all notified the company of the termination of their exclusive contracts, citing non-payment of settlement money and other issues.
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