Cha Ga-won: Employees of Three Affiliated Companies Suffering Damage Claim "Wages Are Unpaid, Yet 'Letter of Non-Prosecution' Is Demanded First" [Full Text]

*This content was translated by AI.

Cha Ga-won, chairman of the Pia Group and CEO of One Hundred Label, is facing allegations of fraud in the hundreds of billions of won range, while employees of its affiliated labels have pointed out Cha Ga-won's problematic conduct.

On the 16th, the "Employees of Three Affiliated Companies Suffering Damage" group, comprising One Hundred Label, Big Planet Made Entertainment, and i&b100, released a statement saying, "Amid a long-term wage arrears crisis, Cha Ga-won's attitude of demanding a 'Letter of Non-Prosecution' before making any efforts to resolve the issue is unacceptable."

The group stated, "Cha Ga-won's side claims that wages will be deposited if a Letter of Non-Prosecution is signed, yet they are demanding such a letter from employees. While Cha Ga-won enjoys a lavish life driving expensive foreign cars, employees have not received their back wages for months and are suffering from severe financial hardship. No conditions should be attached to wages, and a Letter of Non-Prosecution, which should be resolved through employees' goodwill, must not be used as bait for wage payment."

They urged the Ministry of Employment and Labor, stating, "Currently, about 100 employees who worked at One Hundred Label, Big Planet Made Entertainment, and i&b100 are suffering from damages such as unpaid four major insurances, unpaid wages, and unsettled severance payments. We are experiencing psychological pain as secondary victims. Please examine whether there are no appropriate administrative measures we can rely on."

The Seoul National Police Agency's Financial Crime Investigation Division recently applied for an arrest warrant against Cha (CEO) on charges including fraud under the Act on Aggravated Punishment of Specific Economic Crimes. The Prosecution Service is currently reviewing whether to file the arrest warrant. Cha (CEO) is accused of proposing joint ventures to companies in the relevant industry under the guise of intellectual property (IP) business for affiliated entertainers, receiving large advance payments, but failing to proceed with the business.

The police have been investigating the case by merging three criminal complaints filed against Cha (CEO). According to industry sources, the total amount claimed as fraud damages is around 300 billion won.

Cha Ga-won's side denies the allegations. They argue that this suspicion is part of a "hostile mergers and acquisitions (M&A) operation" targeting One Hundred Label. Additionally, Cha (CEO)'s side submitted a petition for a retrial to Seoul Central District Court on the 22nd of last month, claiming that during the search and seizure, the police seized KakaoTalk conversation records beyond the scope specified in the warrant and failed to properly guarantee the right of defense counsel participation during the forensic selection process.

Meanwhile, artists under contract, including Lee Seung-gi, EXO unit EXO-CBX (Chen, Baekhyun, Xiumin), group VIVIZ, and Lee Mu-jin, have notified Cha (CEO) of termination of their exclusive contracts due to unpaid settlement funds.

Our "Employees of Three Affiliated Companies Suffering Damage" group finds it regrettable that while Cha Ga-won's side recently posted an apology on YouTube and other platforms promising to soon resolve the long-term wage arrears crisis, they are simultaneously using the Letter of Non-Prosecution as bait and mocking the victims.

We express deep regret over Cha Ga-won's side's attitude. Hoping for a responsible solution to be offered promptly, we state the following four positions.

First, Cha Ga-won's side claims that wages will be deposited if a Letter of Non-Prosecution is signed, yet before demanding such a letter from employees, back wages should be paid first.

While Cha Ga-won enjoys a lavish life driving expensive foreign cars, employees have not received their back wages for months and are suffering from severe financial hardship. No conditions should be attached to wages, and a Letter of Non-Prosecution, which should be resolved through employees' goodwill, must not be used as bait for wage payment.

Second, Cha Ga-won's legal representative (law firm Hwageum, lawyer Hyun Dong-yeop) is urged to stop deceiving and mocking employees and to apologize.

Cha Ga-won's side claims, "If a Letter of Non-Prosecution is signed and wages are still not received, the Letter of Non-Prosecution becomes meaningless," and states, "Some employees demanding back wages first either do not understand this procedure and structure or are engaging in false agitation."

Even Cha Ga-won's legal representative is mocking victims by saying, "If a Letter of Non-Prosecution is signed and wages are not paid, we can just file a fraud lawsuit lol lol lol lol lol."

However, once a Letter of Non-Prosecution is submitted to law enforcement authorities or the court, it is difficult for the victim to withdraw it. Cha Ga-won's side is making arguments that do not align with legal principles, misleading the public as if some employees misunderstand the content or are making malicious claims, and further mocking the victims.

Third, hundreds of billions of won in company funds have been transferred to suspicious accounts.

According to our findings, hundreds of billions of won that should rightfully remain in the company have disappeared and been transferred to Cha Ga-won's personal account or accounts of companies related to Cha Ga-won.

As a result, damages have continued in areas such as employee wages that should have been paid, costs for business partners, and artist settlement funds, and these damages are growing like a snowball.

In the future, the "Employees of Three Affiliated Companies Suffering Damage" group will continuously request investigations from the relevant authorities regarding these criminal suspicions and will actively cooperate by conveying all facts about past events during the investigation process until illegal acts are corrected.

Fourth, we urge the Ministry of Employment and Labor.

Currently, about 100 employees who worked at One Hundred Label, Big Planet Made Entertainment, and i&b100 are suffering from damages such as unpaid four major insurances, unpaid wages, and unsettled severance payments.

Officials of the Ministry of Employment and Labor are asked to examine whether Cha Ga-won's side's act of attaching conditions such as requesting a Letter of Non-Prosecution for wages that should rightfully be paid is contrary to the true intent of labor law, and whether there are no appropriate administrative measures we can rely on as we suffer psychological pain from various mockeries and secondary victimization directed at members.

Thank you.

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*This content was translated by AI.