Police have sent Cha Ga Won, chairwoman of p-Arc Group and CEO of One Hundred, to prosecutors after detaining her on fraud charges.
The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit announced on August 7 that Cha was transferred to the Seoul Central District Prosecutors’ Office while in custody. She is accused of violating South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes.
According to police, Cha allegedly received 24.2 billion won ($17 million) in advance payments after proposing a business project using the intellectual property of artists under her company. However, investigators claim that the project was not properly carried out as promised, resulting in estimated damages of around 30 billion won ($21 million).
Cha’s side has denied the allegations, claiming that the accusations are part of an attempt to take control of One Hundred through a hostile takeover.
Police initially sought an arrest warrant for Cha twice in June, but both requests were rejected after prosecutors called for additional investigation. Police submitted a third request last month after conducting further reviews, including financial tracking and contract analysis.
The Seoul Central District Court approved the arrest warrant on August 3rd, citing concerns that evidence could be destroyed.
Cha is also facing a separate investigation over allegations that she encouraged acquaintances to sign housing lease contracts under their own names, collected 5.4 billion won ($3.8 million) in deposits, and failed to fulfill the agreements.
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