Employees at music labels under One Hundred Label chairman Cha Ga Won are reportedly facing threats to their livelihoods, as the company has allegedly failed to pay mandatory social insurance contributions and retirement funds for months.
According to an investigation by The Fact on February 12, Cha Ga Won, chairman of One Hundred Label and head of affiliated companies One Hundred (home to The Boyz), Big Planet Made (Taemin, VIVIZ, BADVILLAIN, Lee Soo Geun, and others), and INB100 (Baekhyun, Chen, and Xiumin), has not paid employee contributions for South Korea’s four major social insurance programs or retirement pensions for several months. The three companies employ roughly 100 staff members.
South Korea’s four major social insurance programs include the national pension, health insurance, employment insurance, and industrial accident compensation insurance. These programs serve as a key social safety net by covering workplace injuries, medical expenses, unemployment support, and retirement security. Employers are legally required to enroll employees and share payment responsibilities. While industrial accident insurance is fully paid by the employer, the remaining programs are jointly funded by employers and employees, with employee contributions automatically deducted from monthly salaries.
However, reports claim Cha has failed to pay the employer’s share of the insurance premiums for months, while employee contributions continue to be deducted from wages. Due to prolonged nonpayment, the insurance authorities have recently notified individual employees of the outstanding balances. The duration of missed payments varies across the three labels, ranging from one to four months. As a result, approximately 100 employees under Cha’s management are reportedly working without basic welfare protections.
Growing Financial Concerns
The companies are also said to be facing severe financial difficulties, including complete capital impairment, unpaid settlements to artists, and outstanding payments to business partners. These issues have raised concerns that the situation may be difficult to resolve in the near future.
Although employee salaries have continued to be paid, some payments have reportedly been delayed by several days since November. Staff members are now reportedly concerned about whether this month’s wages will be paid.
Retirement benefits are another concern. The company has allegedly failed to pay retirement pension contributions, potentially creating issues for employees seeking severance payments in the future. Under Korean law, failure to pay retirement contributions is treated similarly to wage theft and may result in criminal penalties. Employers who fail to pay outstanding contributions and interest within 14 days of an employee’s retirement may face up to three years in prison or fines of up to 30 million KRW (about 20,915 USD).
Operational Disruptions
The company’s financial troubles are reportedly affecting daily operations. Managers who require operational expenses for work are said to be unable to use corporate credit cards and are currently paying for company vehicle fuel out of pocket. Reports also indicate that the company has fallen behind on lease payments for company vehicles and is facing demands for their return, which could affect artists’ transportation for scheduled activities.
The labels may also face office-related issues. Each of the three companies rents separate buildings in Gangnam, Seoul, but Cha has allegedly failed to pay rent for the past three months. According to sources familiar with the matter, he did not meet the final payment deadline previously promised. However, immediate eviction is considered unlikely due to tenant protection laws.
Personal Legal Issues
Cha Ga Won is also reportedly facing personal financial and legal troubles. Authorities have seized a villa owned by Cha due to unpaid taxes, and he has been accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes in connection with an alleged 10 billion KRW (about 6.96 million USD) case.
Cha Ga Won and MC Mong jointly founded One Hundred in December 2023. The company later expanded rapidly through acquisitions and mergers, including Big Planet Made and INB100, which was established by Baekhyun. The aggressive recruitment of artists drew criticism and controversy. MC Mong was excluded from management in June last year and soon left the company, leaving Cha as the largest shareholder with significant control over all three labels. While the three-label alliance grew rapidly under Cha’s leadership, reports now suggest that serious internal problems have emerged.
Company Response
In response to the allegations, Cha Ga Won’s side stated, “The delay in payments for the four major social insurance premiums and retirement pensions was due to delays in the confirmation process and will be resolved by tomorrow. We are also in the process of resolving issues related to corporate cards for managers’ operational expenses.”
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