Lee Seung-gi files embezzlement complaint against Cha Ga-won amid construction dispute; subcontractor sues over unpaid fees

Singer and actor Lee Seung-gi has filed a criminal complaint against One Hundred CEO Cha Ga-won on embezzlement charges, as a dispute over construction costs for a newly built building in Seoul's Jangchung-dong drags on. A subcontractor caught in the crossfire has also filed a lawsuit, saying it has not received 16 million won ($11,300) in unpaid construction fees.

The subcontractor, involved in construction of Lee's Jangchung-dong building — a project entrusted to Cha's side — has not been paid for its work and filed a lawsuit against the contractor, P Construction, demanding payment. The subcontractor also sent Lee's side a certified demand letter seeking the funds.

Lee purchased the Jangchung-dong site in 2024 and commissioned P Construction, a firm operated by Cha — who was then his agency head — to build a structure with one below-ground floor and five above-ground floors. P Construction agreed to complete the work by December last year and subcontracted part of the job to a company run by a person identified only as A.

Lee had been living on a jeonse lease in a luxury villa in Hannam-dong, Yongsan-gu, owned by Cha and his wife, and had planned to move into the Jangchung-dong building once it was finished.

Construction fell behind schedule, however, and the building was completed only recently.

As delays mounted, Lee paid most of the construction costs, withholding only a portion of the final payment. P Construction then exercised a lien, saying it would not hand over the building until Lee paid the remaining balance along with additional charges for the delays. Lee responded by filing for an injunction to compel the handover.

The subcontractor has been caught in the fallout. Company A filed a lawsuit after P Construction failed to pay the 16 million won it owed for the work.

Lee's side has argued that the construction delays caused losses exceeding the withheld balance, and has accused P Construction of improperly pressuring it to cover the subcontractor's fees. P Construction, for its part, said it has not received the final payment from Lee but is working to secure the funds and pay the subcontractor.

Amid the dispute, Lee recently filed a criminal complaint against Cha under the Act on the Aggravated Punishment of Specific Economic Crimes, alleging that Cha embezzled construction funds during the building process.

Lee and Cha are also at odds over a jeonse deposit. At Cha's suggestion, Lee moved into a luxury villa in Hannam-dong, Yongsan-gu, paying a jeonse deposit of 10.5 billion won. The lease expired Thursday, but Cha's side has not returned the deposit.

Meanwhile, Cha was arrested and referred to prosecutors on Friday on charges of proposing an intellectual property business to Nomers Co. using celebrities under his management, collecting 24.2 billion won in advance payments and then failing to carry out the project. Total damages are estimated at around 30 billion won, and Cha is also embroiled in disputes with artists under his management over unpaid settlements.