'Cha Ga-won Three-Company' Victims' Group: "Selling Only the Ferrari Would Cover All Laundry Costs... Wage Issues Remain Serious" [Full Text]

*This content was translated by AI.

Cha Ga-won, chairman of Pia Group and CEO of One Hundred Label, is facing allegations of fraud in the hundreds of billions of won range. Employees and staff under his labels have once again called on Chairman Cha Ga-won to resolve the remaining wage issues.

On the 18th, the 'Three-Company Victims' Employees' Group' related to Cha Ga-won, including One Hundred Label, Big Planet Made Entertainment, and i&b100, released an additional official statement: "Thanks to the many people who have shown interest in our issue, Cha Ga-won's side has begun paying wages to employees. We can finally catch our breath, but there are still unresolved issues."

The 'Three-Company Victims' Employees' Group' pointed out the problem on the 16th, stating, "In the midst of a long-term wage arrears crisis, Cha Ga-won's attitude of demanding a 'letter of non-prosecution' before making efforts to resolve the issue."

The Seoul National Police Agency's Financial Crime Investigation Division recently applied for an arrest warrant against Cha (CEO) on charges such as 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 victims is around 300 billion won.

The side of Cha (CEO) denies the allegations. They argued that this suspicion is part of a 'hostile mergers and acquisitions (M&A) operation' targeting One Hundred Label. Additionally, the side of Cha (CEO) submitted a protest to Seoul Central District Court on the 22nd of last month, claiming that during the police search and seizure, items such as KakaoTalk conversation records were seized beyond the scope specified in the warrant, and that the right of defense counsel participation in the forensic selection procedure was not properly guaranteed.

Meanwhile, affiliated artists including Lee Seung-gi, EXO unit EXO-CBX (Chen, Baekhyun, Xiumin), group VIVIZ, and Lee Moo-jin have notified Cha (CEO) of termination of their exclusive contracts due to unpaid settlement fees, among other reasons.

Hello. This is the 'Three-Company Victims' Employees' Group' related to Cha Ga-won, including One Hundred Label, Big Planet Made Entertainment, and i&b100. Thanks to the many people who have shown interest in our issue, Cha Ga-won's side has begun paying wages to employees. We can finally catch our breath, but there are still unresolved issues. We hereby state the following position.

First, Cha Ga-won must immediately pay the remaining wage issues.

Dozens of employees and staff from the three companies are still not receiving wages. Employee contributions to the four major insurances are also in arrears. Due to months of unpaid wages, employees and staff are struggling to survive day by day. Cha Ga-won must immediately pay wages to the remaining employees and pay all outstanding four major insurance contributions.

Second, Cha Ga-won must sincerely apologize for the wage arrears crisis.

Chairman Cha Ga-won demanded a 'letter of non-prosecution' instead of paying back wages. Even after employees protested and issued a statement in the name of the 'Three-Company Victims' Group,' the same thing happened. While Cha Ga-won claimed to have secured funds to pay wages, he also made statements to the media, citing "malicious incitement by certain forces." Cha Ga-won's legal representative also posted comments on his YouTube video stating, "We have paid wages, but how do we prepare for the situation where they won't sign a letter of non-prosecution?" and "The letter of non-prosecution and wage payment are in a relationship of simultaneous performance." The implication is that wage payments were delayed because employees fell for the malicious incitement of certain forces.

However, no conditions should be attached to wages, and the responsibility for the current situation lies entirely with Cha Ga-won himself. Most importantly, Cha Ga-won made erroneous claims and worried about public opinion, causing back wages to be pushed to the back burner. Although not long, it took time again for some employees to receive their wages. For us who have suffered from financial hardship for a long time, even that short wait was like hell. Moreover, many employees still have not received their wages. Cha Ga-won should have used the funds he secured to pay wages first, rather than blaming others. Paying back wages is the first priority, and sincerely apologizing to employees is the second. Posting a formal apology on YouTube and making statements to the media comes later.

Third, we once again urge the Ministry of Employment and Labor.

Please do not delay the investigation into Cha Ga-won's violations of labor laws and continue to look into them. Although Cha Ga-won has begun paying wages to some employees, the damage we have suffered does not disappear. Not only us, but all entertainment company employees work silently behind the scenes out of love for artists and fans. Please investigate strictly so that the same thing does not happen to us or to the entertainment industry.

Finally, we appeal to the investigators.

According to our understanding, company funds amounting to hundreds of billions of won have been transferred to Cha Ga-won personally or to related companies. The victims are those who trusted Cha Ga-won and the company, who have borne the damage entirely. Employees did not receive wages, and artists left the company after not receiving settlements for a long period. As revealed through broadcasts, there are many small businesses, such as laundries, among the trading partners who have not received payments. This is why victims make self-deprecating jokes, saying, "Even if Cha Ga-won sells only his Ferrari, he would have enough to pay off all laundry costs." Based on the situation so far, it is expected that the damage will grow even larger. Please investigate strictly to prevent the damage from growing further.

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*This content was translated by AI.