One Hundred Label CEO detained over alleged 30 billion won fraud

Cha Ga-won, the co-CEO of the entertainment agency One Hundred Label, was detained on Monday over allegations of fraud involving about 30 billion won ($21 million).

The Seoul Central District Court issued a detention warrant after conducting a predetention hearing for Cha on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes due to concerns that she “could destroy evidence.”

Prosecutors claim that Cha proposed a business venture to knowmerce, an entertainment and technology company, involving the intellectual property of artists under her agency. She signed a contract with the firm and allegedly received 24.2 billion won in advance payments. However, she failed to carry out the project.

Police believe that Cha did not inform knowmerce that an existing contract with another company was unlikely to expire soon and entered into a duplicate contract, only to be unprepared to carry out the project.

Cha has denied all allegations.

Police previously applied twice for a detention warrant for Cha, but prosecutors rejected both requests and ordered them to investigate the matter further.

Police then traced bank accounts and analyzed contractual relationships before applying for a third detention warrant. Prosecutors requested the warrant on July 28.

Cha left the courthouse on Monday after a detention hearing that lasted about two hours and 40 minutes. She did not respond to reporters’ questions, such as whether the allegations were true.

BY JEONG HYE-JEONG [lee.jiwon10@joongang.co.kr]