K-Pop Labels Under Fire for Alleged Unpaid Wages and Insurance Premiums
Nearly 100 employees at three prominent South Korean music labels – THE BOYZ’s home, Big Planet Made, and INB100 – are facing financial insecurity as allegations surface regarding unpaid wages, social insurance premiums, and artist settlements.
A report published on February 12 by The Fact revealed that Cha Ga Won, CEO of One Hundred, has allegedly failed to remit required payments for months, jeopardizing the financial well-being of staff and affiliated artists. The situation raises serious questions about the financial stability of the companies and the protections afforded to workers in the highly competitive K-pop industry.
Mounting Financial Concerns at One Hundred and Affiliates
The core of the issue centers around the non-payment of the four major social insurances – national pension, health insurance, employment insurance, and industrial accident insurance – which serve as a critical “social safety net” for workers in South Korea. Employers are legally obligated to contribute to these programs, with a portion automatically deducted from employee wages. According to the report, while employee contributions have continued to be withheld, Cha Ga Won has reportedly not paid the employer’s share for several months.
This has resulted in notifications of delinquency being sent directly to employees by the insurance authority, leaving nearly 100 individuals working without access to essential benefits. The payment delays reportedly range from one to four months across the different labels.
Artists and Vendors Also Affected
The financial strain extends beyond employees. The report alleges that One Hundred and its subsidiaries are experiencing “complete capital impairment,” resulting in significant unpaid settlements to artists. Baekhyun, Taemin, and THE BOYZ are reportedly each owed nearly 1 billion Korean won (approximately $750,000 USD) in outstanding payments. Unpaid debts to vendors are also contributing to the growing financial crisis.
Furthermore, the report indicates a deterioration in operational efficiency. While salaries are still being paid, they have begun arriving several days late since November. Managers are reportedly using personal funds to cover company expenses, such as vehicle fuel, due to restrictions on corporate credit card usage. The company has also allegedly failed to meet vehicle lease payments, potentially disrupting artist schedules, and faces the risk of eviction due to three months of unpaid rent.
Company Response and Future Outlook
Representatives for Cha Ga Won acknowledged a delay in paying employee insurance premiums but stated that payments would be made “within a day.” They also pledged to address the issues surrounding the managers’ corporate cards.
However, the extent of the financial difficulties and the long-term implications for the companies and their artists remain unclear. The situation underscores the need for greater financial transparency and worker protections within the K-pop industry, where rapid growth and intense competition can sometimes overshadow fundamental labor rights.
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