On June 18, 2026, the Seoul Central District Prosecutors' Office rejected a second arrest warrant request for Cha Ga Won, CEO of agency ONE HUNDRED, which had been submitted the previous week by the financial crime investigation unit of the Seoul Metropolitan Police Agency. As with the first request, the prosecution cited insufficient evidence and returned the application to the police.

Police suspect Cha Ga Won of fraud totaling 30 billion won. She is accused of receiving an advance payment of 24.2 billion won from Knowmerce Corp. for a project involving intellectual property of artists under the agency's management, but the project was never carried out.

Read more: All news about the ONE HUNDRED scandal

In addition, Cha Ga Won allegedly asked acquaintances to sign rental contracts for real estate and received 5.4 billion won in deposits, but failed to fulfill the contract terms.

An investigative report on the situation at ONE HUNDRED and its leadership, including alleged real estate schemes and the involvement of the company's artists, was published by MBC in early June.

You can read it here: MBC's Bombshell Investigation Targets Cha Ga Won and MC Mong

However, the prosecution determined that the police investigation had not produced sufficient evidence to prove that Cha Ga Won had intended to defraud the victims, including Knowmerce.

In response, Cha Ga Won's lawyer from the law firm Hwageum issued a statement claiming: "The harm caused by the police's monopoly on investigative powers has been fully exposed." The lawyer added: "The original complaint against Cha Ga Won is not a criminal matter, yet the police conducted an unlawful investigation in an attempt to detain the suspect. Following the Bang Shi Hyuk case at HYBE, we are concerned about the Seoul Metropolitan Police Agency's practice of requesting arrest warrants."

Earlier, the financial crime investigation unit of the Seoul Metropolitan Police Agency had twice sought arrest warrants for HYBE chairman Bang Shi Hyuk on suspicions of fraudulent practices violating capital markets law, but the prosecution rejected both requests.

The lawyer also said that Cha Ga Won had filed a complaint with the National Human Rights Commission, alleging violations of human and constitutional rights during the investigation conducted by the financial crime unit.

Nevertheless, the situation at ONE HUNDRED is clearly becoming increasingly complex. Cha Ga Won narrowly avoided arrest. MC Mong, the former head of ONE HUNDRED, has been implicated in receiving gifts worth 10.3 billion won.

Employees who are owed wages and severance pay are protesting. ONE HUNDRED and its affiliated companies (Big Planet Made Entertainment, INB100) are facing a serious payment crisis. Staff and artists complain about unpaid salaries and royalties. The non-payment issue has affected many artists, including Lee Seung Gi, Baekhyun, Chen, Xiumin, Lee Mu Jin, and the group VIVIZ, all of whom have already notified the agency of contract termination.

Numerous complaints have been filed with the Ministry of Employment and Labour since April 2026. Employees accused Cha Ga Won of offering to pay wage arrears in exchange for signing a "letter of non-consent to punishment" (처벌불원서). This effectively means that workers had to waive claims against their employer in order to receive their money.

The ministry has deemed this a possible case of coercion and launched a full-scale investigation, stressing that such agreements must be purely voluntary and cannot be made a condition for wage payment.

Cha Ga Won has publicly accused Lee Seung Gi and his manager of orchestrating employee statements, and has demanded that the singer return everything he "took" from Cha Ga Won. Who took what from whom remains to be clarified, as Lee Seung Gi has a rather complicated history of real estate and credit dealings with Cha Ga Won.

Meanwhile, the "Group of Affected Employees from Three Companies" issued a statement which reads, in part:

"Dozens of employees from three companies have still not received their wages, and payments for four major insurance premiums are overdue. Months of wage arrears have made it difficult for staff to make ends meet. The company must immediately pay remaining employees and settle all outstanding insurance contributions.

Secondly, Cha Ga Won must offer a sincere apology regarding the wage arrears. (...)

Thirdly, we once again urge the Ministry of Employment and Labour to provide us with the necessary assistance. Please do not delay the investigation into labour law violations and continue to look into this matter. Although Cha Ga Won has reportedly begun paying some employees, the damage done to us remains. Not only we, but all entertainment company employees have worked hard behind the scenes out of love for artists and fans. Please conduct a thorough investigation to ensure that this never happens again, to us or to the entertainment industry. Finally, we appeal to investigators. According to our information, tens of billions of won in company funds were transferred to Cha Ga Won personally or to entities connected to her. Those who trusted Cha and the company have suffered. Employees have not been paid, and artists have left after long periods without compensation. As reported in the media, many small businesses, such as dry cleaners, are among those unpaid. That is why victims joke: 'If we sold Cha Ga Won's Ferraris, we would have more than enough to cover all dry-cleaning bills.' Given the current situation, losses are expected to grow. We ask you to conduct a thorough investigation to prevent further escalation."

Sources 1, 2, 3