Lee Seung Gi Contract Dispute: What You Need to Know

Cha Ga-won, CEO of One Hundred Label and Chairman of P-ARK Group, is vehemently refuting allegations regarding his exclusive contract and financial disputes with artist Lee Seung-gi, escalating the legal battle to its peak. Following the revelation of their financial conflict on MBC's investigative program 'PD Notebook,' a fierce battle of truth is underway concerning financial matters such as the deposit amount for a lease, responsibility for loan interest, and settlement of management fees.

Chairman Cha Ga-won strongly asserted, "It is absolutely untrue," regarding the suspicion that he recommended the lease of Villa A, which he built, to Lee Seung-gi. Conversely, Lee Seung-gi's legal representative countered, "​All claims made by Chairman Cha Ga-won are false, and we have sent a certified letter demanding the return of the lease deposit."

The most contentious point is the nature of the lease agreement for the villa where Lee Seung-gi resides. Lee Seung-gi's side claims that Chairman Cha "continuously urged him to sign the lease, saying he wanted to live close by and rely on him." However, Chairman Cha countered that Lee Seung-gi did not move in as a leaseholder but rather received the house as a form of collateral for his exclusive contract deposit. He explained that due to tax issues, the lease agreement was arranged as a preliminary step before the ownership transfer. Furthermore, he emphasized, "​If this collateral condition had not been in place, I would not have signed the exclusive contract," and mentioned the existence of related recorded conversations.

Statements from both sides also differ regarding the initial lease deposit amount. Lee Seung-gi's side claims they were asked for a deposit more than three times the amount initially discussed shortly after moving in. Chairman Cha, however, reacted with disbelief, stating, "​How can the lease deposit for a house with a market value in the 10 billion won range be around 3 billion won?"

A conflict also persists over who is responsible for paying monthly loan interest and management fees, which amount to tens of millions of won. Chairman Cha claims he personally covered the monthly interest of 32 million won for approximately two years and also paid the outstanding management fees of 5 million won. However, Lee Seung-gi's side argues that the loan interest was processed as an advance payment to the entertainment company without Lee Seung-gi's consent, contrary to the initial agreement, and Cha's claim of bearing the costs is false. They also assert that while an agreement was made to offset the management fees with unpaid settlement funds, it was not honored.