Unpaid Employees, Rent Overdue— Multi-Label K-Pop Company Reportedly Crumbling Over Finances

Employees across multiple music labels are facing financial uncertainty as reports emerge of unpaid wages and benefits. The situation centers around One Hundred Label and its affiliated companies, impacting nearly 100 workers.

Financial Difficulties at One Hundred Label

On February 12, KST, The Fact reported that Cha Ga Won, CEO of One Hundred (home to THE BOYZ), Big Planet Made (home to Taemin, VIVIZ, Bad Villain, etc.), and INB100 (home to Baekhyun, Chen, and Xiumin), has allegedly failed to make required social insurance and retirement pension contributions for employees.

Did You Know? Employers in Korea are legally obligated to fully pay industrial accident insurance and cover half of national pension, health insurance, and employment insurance premiums, with the remaining half deducted from employee wages.

These four major social insurances – national pension, health insurance, employment insurance, and industrial accident insurance – are considered a vital “social safety net” for workers. The non-payment, spanning one to four months, has prompted notifications from the insurance authority directly to employees.

Broader Financial Concerns

The issues extend beyond insurance contributions. Reports indicate that all three companies under Cha Ga Won’s leadership are experiencing “complete capital impairment.” This includes approximately 1 billion in unpaid settlements owed to artists such as Baekhyun, Taemin, and THE BOYZ, as well as outstanding debts to vendors.

Expert Insight: The failure to meet basic financial obligations like insurance and artist settlements suggests a potentially systemic issue within these labels, raising concerns about their long-term viability and the stability of the artists and employees associated with them.

Salaries, while still being paid, have reportedly been arriving several days late since November, and the situation is described as worsening. Operational challenges are also emerging, with managers reportedly using personal funds to cover company expenses like vehicle fuel due to restrictions on corporate credit card use. Vehicle lease payments are also reportedly overdue, potentially impacting artist schedules.

The company’s office space is also reportedly at risk, with three months of rent currently unpaid.

Company Response

Representatives for Cha Ga Won have acknowledged a delay in insurance premium payments, stating that they expect to resolve the issue within a day. They also indicated plans to address the corporate card limitations for managers.

Frequently Asked Questions

What companies are affected by these financial issues?

One Hundred, Big Planet Made, and INB100 are all reportedly facing financial difficulties, impacting approximately 100 employees across the three labels.

Which artists are reportedly owed settlements?

Baekhyun, Taemin, and THE BOYZ are each reportedly owed nearly 1 billion in unpaid settlements.

What specific benefits are employees currently lacking?

Employees are currently working without receiving the benefits associated with the four major social insurances: national pension, health insurance, employment insurance, and industrial accident insurance.

What impact will these financial challenges have on the future of these labels and their artists remains to be seen.