Entertainment agency One Hundred, led by CEO Cha Ga-won, has lost an 8 billion won ($5.4 million) damages lawsuit against Joo Hak-nyeon, a former member of idol group The Boyz whom the company dropped over prostitution allegations that were ultimately found to be groundless.
Civil Division 28 of the Seoul Central District Court ruled against One Hundred in its roughly 8 billion won damages claim against Joo.
Joo, who was a member of The Boyz under One Hundred, sparked controversy last year when Japanese media photographed him drinking and making physical contact with a woman identified only as "A," a former adult film actor, during a visit to Japan in June. Reports subsequently emerged in South Korea alleging that Joo had paid for sex with the woman. Joo denied the claims and maintained his innocence, but One Hundred removed him from The Boyz and terminated his exclusive contract.
Just two weeks after the contract termination, police decided not to refer the prostitution case to prosecutors, citing a lack of concrete evidence. Then, in June — more than a year later — the journalist who had reported the prostitution allegations was indicted on charges of defaming Joo by publishing false information.
The court ruled that the circumstances did not clear the bar for contract termination. "The prostitution charge resulted in a police decision not to refer the case, and the reporting of the allegations led to an indictment for defamation," the court said. "Taken together, these circumstances do not constitute sufficient grounds to terminate an exclusive contract on the basis of a breakdown of trust." The court also ruled that Joo's meeting with the former adult film actor was "a matter of private life" and that, while it "may have been inappropriate conduct for a member of an idol group, it cannot be regarded as a serious act of reputational damage."
One Hundred and Cha have recently drawn scrutiny over unpaid settlements and employee wages. The Boyz and several other acts — including singers Lee Seung-gi, Lee Mu-jin, EXO-CBX and Bbibbi — have each filed lawsuits to terminate their exclusive contracts, alleging they have not received settlement payments. A number of employees have also filed complaints with the Ministry of Employment and Labor over unpaid wages. The total amount left unpaid is believed to exceed 10 billion won.
One Hundred was co-founded in 2023 by Cha and singer MC Mong, who were once reported to have been in a romantic relationship. The two have also faced allegations of embezzling company funds to gamble abroad. MC Mong has since left the company amid a management dispute. Cha is currently under investigation by police after The Boyz members filed a complaint against her on embezzlement charges.
paq@heraldcorp.com
