[Breaking News] Prosecution Service, Cha Ga-won, CEO, Indicted on Arrest Warrant for '30 Billion Won Fraud Allegations'

*This content was translated by AI.

The Prosecution Service has indicted Cha Ga-won, Chairman of PIAC Group and CEO of One Hundred Label, on charges of fraud involving approximately 30 billion won.

On the 25th, the Seoul Central District Prosecutors' Office for Tax Crimes indicted Cha Ga-won under the Act on Aggravated Punishment of Specific Economic Crimes for fraud. Previously, on the 7th, the Metropolitan Police Agency's Financial Crime Investigation Unit transferred Cha Ga-won to the Prosecution Service with a request for arrest.

Cha Ga-won is accused of proposing a business project utilizing intellectual property (IP) of artists under his agency to Knowmerce Co., Ltd., signing a contract, receiving an advance payment of 24.2 billion won, and then failing to fulfill the actual business operations. The scale of damage is reported to be approximately 30 billion won.

The police determined that Cha Ga-won needed to be arrested and applied for an arrest warrant twice in June; however, the Prosecution Service rejected the requests, ordering further investigation. Consequently, after additional investigations, the police submitted a third application for an arrest warrant on July 22, and the Prosecution Service requested an arrest warrant against Cha Ga-won on July 28.

In response, the court held a pre-trial detention hearing (substantive review of the arrest warrant) regarding Cha Won (CEO) on the 3rd and issued the arrest warrant, citing "concerns over destruction of evidence."

Cha (CEO) has completely denied the allegations, arguing that "various suspicions surrounding One Hundred Label were raised during a hostile mergers and acquisitions (M&A) process."

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*This content was translated by AI.