South Korean police have reportedly requested an arrest warrant for Cha Ga-won, the chairman of entertainment company ONE HUNDRED, over allegations involving approximately ₩30 billion (around $22 million USD) in fraud.
According to reports on June 15, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency recently applied for an arrest warrant on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. Prosecutors are currently reviewing whether to formally seek the warrant.
Authorities allege that Cha Ga-won proposed a business partnership to companies including Nomus by leveraging artists signed under his entertainment label. Police believe that approximately ₩24.2 billion in advance payments were received despite the proposed business project not being carried out as agreed.
Investigators further suspect that Cha Ga-won entered into overlapping contracts while allegedly concealing the fact that an existing agreement with another company was unlikely to expire in the near future. Police also reportedly believe that the project was not adequately prepared for execution at the time the agreements were signed.
The case has been under active investigation for several months. In May, police conducted a search and seizure operation at Big Planet Made Entertainment, a subsidiary of ONE HUNDRED, as part of the ongoing probe. The investigation focuses on whether investors and business partners were misled during negotiations related to artist management and entertainment business ventures.
Cha Ga-won has reportedly denied all allegations during police questioning. According to reports, she argued that the accusations stem from disputes connected to a hostile merger and acquisition (M&A) process and claimed that the allegations were raised with improper motives. In a statement released on May 30, Cha Ga-won maintained that there was no intention to deceive Nomus. She stated that when fulfilling the contract became difficult, his side expressed a willingness to return the advance payments, but claimed the offer was rejected by Nomus.
The dispute has now evolved into a broader legal conflict between both parties. Cha Ga-won’s side has reportedly filed a complaint against Nomus CEO Kim Young-jun and Vice CEO Kim Yoon-ah on allegations related to breach of fiduciary duty under South Korea’s economic crime laws.
As prosecutors review the police request for an arrest warrant, attention remains focused on whether formal detention proceedings will move forward and how the high-profile case could affect ONE HUNDRED and its affiliated entertainment businesses.
Sources: 네이트 뉴스
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