The chief executive officer of South Korean entertainment company ONE HUNDRED, Cha Ga Won, has been arrested on fraud charges involving an alleged scheme worth approximately ₩30 billion (US$21 million).
According to local reports, the Seoul Central District Court issued an arrest warrant for Cha on Aug. 3 under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. She is currently being held at Seoul Mapo Police Station.
Investigators allege that Cha secured an advance payment of ₩24.2 billion (US$16.9 million) from Knowmerce Corp. after proposing a business venture involving the intellectual property (IP) rights of artists managed by her agency.
Authorities claim that although the agreement was signed and the payment received, the project was never carried out.
Police also allege that Cha accepted an additional ₩5.4 billion (US$3.78 million) from an acquaintance under the pretext of entering into a jeonse housing lease agreement but failed to fulfil the contract.
The combined alleged losses are estimated at around ₩30 billion (US$21 million).
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency had twice sought an arrest warrant in June last year, but both requests were rejected by prosecutors.
Police submitted a third application last month after conducting further investigations, including analysing financial records and contractual documents in cooperation with prosecutors.
Before the warrant was issued, Cha reportedly told investigators that she would have been able to repay the money if the business project had proceeded as planned.
The court approved her arrest, citing concerns that evidence could be destroyed. She is expected to remain in custody while investigations continue.
Cha Ga Won has also been at the centre of several recent controversies, including dating rumours involving EXO member Baekhyun and allegations linked to singer and actor Lee Seung Gi’s luxury villa.
