Manager Cha Ga Won, who heads p_Arc Group and One Hundred Label, is now the target of an investigation for an alleged fraud case estimated at around 30 billion won, or nearly 18 million euros. This is the first time she has been officially questioned as a suspect in this case.
According to reports from local media, the Financial Crimes Division of the Seoul Metropolitan Police summoned her for questioning on June 6 and 7. The investigation concerns suspicions related to fraudulent activities within the framework of commercial partnerships in the entertainment industry.
Cha Ga Won is suspected of having used the notoriety and artists of her agencies to attract investors and conclude partnerships. She would have received financial advances for projects which ultimately never came to fruition.
The authorities are currently combining three separate complaints, for a total amount estimated at 30 billion won, or around 18 million euros. During her hearing, the manager rejected all accusations, affirming that these proceedings would be linked to malicious intentions in a context of an attempt to take control of her companies.
She also maintained that she had the willingness and ability to repay the amounts advanced. According to her, the deterioration of the financial situation and the image of her company is linked to negative reports and attacks targeting the company.
As part of the investigation, police raided the offices of Big Planet Made Entertainment, a subsidiary of One Hundred Label, on May 3. Investigators now use the elements seized in order to analyze financial flows and contracts concluded.
Furthermore, Cha Ga Won is also involved in several disputes with artists regarding unsettled payments. On May 21, nine members of the group THE BOYZ filed a complaint, accusing him in particular of embezzlement under the law on aggravated economic crimes.
One Hundred Label and its associated structures, including INB100 (EXO-CBX) and Big Planet Made Entertainment (linked to Lee Seung Gi), are today at the center of several legal tensions. Several artists from these labels have also initiated proceedings to try to terminate their contracts.
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