From left, rapper MC Mong, and Cha Gawon, head of the Wonhundred label. Kyunghyang Shinmun file photo

Allegations have surfaced about the unusual spending of Cha Gawon, head of the Wonhundred label. There are also claims that rapper MC Mong is implicated.

The MBC current affairs program ‘PD Notebook’ on the 2nd, in its episode ‘MC Mong and the Chairman’s K-pop trade secrets,’ referred to Chairman Cha as a “VVIP” customer at a department store in Gangnam and reported that it had been confirmed that the unpaid credit card bill at that store alone exceeds 3.5 billion won.

Earlier, Hanwha Galleria Co., Ltd., which operates Galleria Department Store, filed a claim for 3,598,710,000 won in February as a creditor in a provisional attachment case against CEO Cha. According to multiple media reports, CEO Cha took products on credit from the department store’s luxury hall and delayed payment, and eventually his ownership share in a Hannam-dong villa was placed under provisional attachment.

At the time, Cha’s side rebutted, stating, “The report contains information that differs from the facts, and we believe it could infringe upon the reputation and rights of our company and certain individuals,” adding, “We are also pursuing additional legal action to clarify the facts regarding the circumstances and content of the report as a whole.”

Provisional attachment details related to Cha Gawon, head of the Wonhundred label, released by ‘PD Notebook’. MBC ‘PD Notebook’ screengrab

An entertainment industry insider told ‘PD Notebook’, “(Cha Gawon) would say, ‘Hey, stop filming,’ then suddenly go with MC Mong to the luxury hall. Upon arrival he would say, ‘Hey, have all the managers come up,’ and they would go around the luxury hall shopping, and on the spot he would become the stylist. He said, ‘What is the problem with me dressing my own kid?’”

Cha’s paternal uncle, Mr. A, also alleged that Cha gave MC Mong expensive watches and imported cars as gifts.

These spending allegations intersect with questions raised by the broadcast about the flow of company funds. ‘PD Notebook’ raised suspicions that advances and other company funds that came into Wonhundred were routed to the personal account of Cha, and pointed to indications that a building in Gangnam was purchased in cash under joint ownership with MC Mong. Cha denied on the program, stating in effect that he had never used company funds for personal purposes.