The Fall of a K-Pop Empire: Cha Ga-won’s One Hundred Label Collapses Amid Fraud Charges

The K-pop world is reeling from the shocking detention of Cha Ga-won, CEO of One Hundred Label. On Monday, Cha was taken into custody on fraud charges totaling an estimated 30 billion won ($21 million). Her arrest has left the industry scrambling to comprehend the meteoric rise and equally rapid downfall of a real estate mogul who, in just two years, constructed a multi-label entertainment empire that seemingly crumbled overnight.

Cha Ga-won, CEO of One Hundred Label, was detained Monday on fraud charges involving some 30 billion won ($21 million), leaving the K-pop industry scrambling to understand how a real estate mogul built a multilabel entertainment empire in record time — and lost it just as quickly.

A Meteoric Rise Built on Shaky Ground

Cha’s connections to the vibrant entertainment scene were established even before the founding of One Hundred Label, though they were often shrouded in controversy from the outset. In 2023, following a high-profile dispute with SM Entertainment, EXO’s Baekhyun ventured to establish his own company, One Signature. This performance venture eventually led to his more prominent label, INB100, which later became part of the One Hundred umbrella. To secure a substantial loan of approximately 10 billion won for this new enterprise, Cha and her husband famously used their luxury residential property in Seoul, Lanuvo Hannam, as collateral, immediately drawing significant scrutiny across the K-pop industry.

Recognizing her own limited experience in the entertainment sector, Cha strategically partnered with veteran artist MC Mong, leveraging his extensive industry network. She further solidified her production capabilities by bringing on Park Jang-geun, half of the acclaimed hitmaking production duo Double Sidekick, whose impressive track record includes chart-topping hits for groups like Sistar, Girl’s Day, and Apink, as chief producer.

The expansion was swift and aggressive. In 2023 alone, One Hundred Label acquired two agencies founded by MC Mong: Big Planet Made Entertainment, home to a diverse roster including Lee Seung-gi, SHINee’s Taemin, and comedian Lee Soo-geun; and Million Market. The following year, Cha further expanded her dominion by acquiring Baekhyun’s INB100, which also housed EXO-CBX members Chen and Xiumin. In a bold move, One Hundred Label also poached popular boy group The Boyz from IST Entertainment. This rapid acquisition strategy allowed Cha to assemble a formidable multi-label structure within an astonishing two-year period.

Scandals, Splits, and Legal Battles

However, the label’s seemingly unstoppable ascent came to an abrupt and dramatic halt in mid-2025. The first significant public blow arrived in June 2025, when Ju Haknyeon of The Boyz was caught by a Japanese tabloid allegedly meeting privately with a former adult video star in Tokyo. Cha swiftly terminated his contract, but the incident cast a dark shadow, raising serious questions about the label’s artist management protocols and ethical standards.

A bigger, more internal upheaval struck the same month when Cha controversially removed MC Mong from his duties. Cha later revealed to a local media outlet that she had been receiving troubling reports about MC Mong’s alleged involvement in prostitution since early 2025. Losing the co-founder who was instrumental in building the label’s initial artist roster left Cha to navigate the company’s increasingly turbulent waters alone.

In December 2025, it emerged that Cha had filed a lawsuit seeking 12 billion won in loan repayments from MC Mong, with a court payment order finalized after he did not appeal. The dispute intensified when a media outlet alleged the two had been romantically involved for years.

Cha vehemently denied these claims, asserting that the incriminating evidence had been fabricated under coercion by her uncle. She alleged that her uncle, in collaboration with a business partner, had been orchestrating a hostile takeover of One Hundred Label. Despite Cha’s denials, the label’s image had already suffered irreparable damage in the eyes of the public and the industry.

Artist Exodus and the Final Blow

The most devastating blow arrived early this year as artists began to leave One Hundred Label en masse, signaling the imminent collapse of the empire. In February, nine out of the eleven members of The Boyz — all except New — formally notified the label of their contract termination, citing critical issues such as unpaid settlements and alleged management breaches. Lee Mu-jin followed suit in March. The exodus continued in April, with Lee Seung-gi, Viviz, Baekho, and the remaining members of EXO-CBX all announcing their contract terminations. SHINee’s Taemin also departed, finding a new home at another agency. Across all three labels under the sprawling One Hundred umbrella, only New remained, a stark symbol of the rapid disintegration.

Artists involved in the exodus alleged that the label had consistently refused to provide transparent settlement records. Cha’s legal team, however, countered these claims, stating that 16.5 billion won in advance contract fees had already been paid to The Boyz’s 11 members upon their initial transfer to the label.

In June, the legal noose tightened further as police sought an arrest warrant for Cha on fresh fraud charges. The allegations claimed she had received a staggering 24.2 billion won in advance payments from a company named Nomos for a business venture that intended to utilize her artists’ intellectual property rights — a project she subsequently failed to execute. After two prior requests for an arrest warrant were rejected by prosecutors, a third attempt was finally approved. Cha Ga-won was detained on Monday, with the court explicitly citing a significant risk of evidence tampering as the reason for her arrest.