Cha Ga-won, the CEO of entertainment agency One Hundred Label, has been arrested on charges of fraud exceeding 30 billion won.
According to legal sources on August 4, a chief judge at the Seoul Central District Court issued an arrest warrant for Cha after a pre-arrest interrogation on August 3, citing concerns over potential evidence destruction.
Cha is accused of receiving an advance payment of 24.2 billion won from Nomore Co. by proposing a business utilizing the intellectual property (IP) of affiliated artists, but failing to execute the actual business.
Police have determined that Cha concealed uncertainties regarding the termination of existing contracts with other companies while entering into double contracts, and was not even prepared to carry out the business.
Additionally, it has been reported that Cha began the agency's operations while burdened with significant debt and allegedly engaged in a practice known as 'contract splitting' to manage the debt.
Cha's legal team has denied all allegations, indicating that a court battle is expected in the future.
Previously, police had applied for arrest warrants twice, but they were rejected due to the prosecution's request for further investigation. Following additional inquiries, including account tracking and contract analysis, police successfully secured Cha's arrest on their third attempt, which is expected to enhance the momentum of the ongoing investigation.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.