A cloud of financial uncertainty hangs over One Hundred Label, the South Korean entertainment company home to popular acts like THE BOYZ, Taemin, and Baekhyun, as reports emerge of unpaid employee benefits, mounting debts, and a potential crisis for its affiliated artists. The situation, first reported by Koreaboo and subsequently detailed by AllKpop and Reddit, paints a picture of a company struggling to meet its financial obligations.
At the center of the controversy is Cha Ga Won, CEO of One Hundred, Big Planet Made, and INB100. According to reports from Koreaboo and AllKpop, the company has allegedly failed to pay mandatory social insurance contributions and retirement pensions for roughly 100 staff members across its three labels for several months. These contributions cover essential social safety nets for workers in South Korea, including national pension, health insurance, employment insurance, and industrial accident compensation.
The non-payment isn’t simply an administrative oversight. AllKpop reports that employees have been notified by insurance authorities of the outstanding balances, and the delays range from one to four months depending on the specific label. Crucially, while employee contributions continue to be deducted from their wages, the employer’s share remains unpaid. This leaves employees working without the full benefits they are entitled to, creating a precarious situation for those reliant on these protections.
The financial strain extends beyond employee benefits. Koreaboo details that the three companies are reportedly in a state of “complete capital impairment,” with significant debts owed to both affiliated artists and vendors. Artists including Baekhyun, Taemin, and THE BOYZ are collectively reportedly owed nearly 1 billion won (approximately $750,000 USD) in unpaid settlements.
The situation appears to be deteriorating rapidly. Koreaboo reports that salary payments, while still being made, have begun arriving several days late since November. Operational challenges are also mounting, with managers reportedly unable to use corporate credit cards and having to cover company vehicle fuel costs out of pocket. There are also concerns about unpaid vehicle lease fees and potential disruptions to artist schedules due to transportation issues. Even the company’s office space is reportedly at risk, with three months of rent currently overdue.
In response to the reports, representatives for Cha Ga Won acknowledged a delay in paying employee insurance premiums, but stated that payments would be made within a day, according to Koreaboo. They also pledged to address the issues with corporate credit cards.
The implications of this financial turmoil are significant, not just for the employees and artists directly affected, but for the broader K-pop industry. One Hundred Label’s roster includes established names and rising stars, and any disruption to their activities could have ripple effects. The case also highlights the often-hidden financial vulnerabilities within the highly competitive and demanding world of K-pop, where companies frequently operate with tight margins and rely heavily on the success of a few key artists.
The severity of the situation is underscored by South Korean law. AllKpop notes that 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 won (approximately $22,500 USD). This legal framework adds further pressure on One Hundred Label to resolve the outstanding issues swiftly.
While the company has promised to rectify the situation, the extent of the financial damage and the long-term impact on its artists and employees remain to be seen. The coming weeks will be critical in determining whether One Hundred Label can navigate this crisis and restore stability to its operations.
