Several high-profile Korean celebrities, including CL, Gang Dong Won, Song Ga In, and Kim Wan Sun, are under police investigation for operating unregistered entertainment agencies. The celebrities mentioned here are accused of failing to register their companies as popular culture and arts planning businesses.
The investigation has been broken down to separate cases assigned to a specific police station. CL and Gang Dong Won’s cases were assigned to Yongsan Police Station. Song Ga In’s case is being handled by Seocho Police Station while Kim Wan Sun’s case went to Dongbu Police Station.
What Are The Allegations?
All entertainment agencies that have more than one employee have to register with the Ministry of Culture, Sports and Tourism. Even a one-person agency has to comply since there’s usually staff like managers, stylists, people to manage social media or fan clubs, etc.
Failing to register is a violation of the Act on the Development of the Public Culture and Arts Industry. The Act became law in 2014 to regulate the entertainment industry, protect artists, and ensure companies operate transparently. Penalties range from up to two years in prison or a fine of ₩20.0 million won (about $14,400 USD).
A registered agency faces oversight but also gains legal protections. The law isn’t perfect but it does offer safeguards for an industry criticized for exploitative business practices. Unregistered agencies bypass those protections. The investigations noted that if top stars can bypass the law, anyone else can get away ignoring the rules.
The Idol Dream vs. Harsh Reality
Whenever an idol has problems with their agency, international fans will suggest they should start their own company. The idea appeals to i-fans because of the freedom of being your own boss, being able to choose what your concept will be, what your schedule will look like, etc.
The reality is a bit more complicated. Not every idol has the business sense needed to run their own agency. It’s an expensive undertaking where you need a building, staff, and funds for all of your activities. Now we’re seeing there’s a lot that needs to be done on the legal side of things. There’s so much more to K-pop than the music or the ending fairies. It’s a business, one that requires an infrastructure strong enough to keep things afloat. In other words, with artistic freedom comes great responsibility.
What Happens Next?
The Ministry of Culture, Sports and Tourism has announced a grace period through December 31, 2025. This gives unregistered agencies the chance to voluntarily comply with the law. The ministry is even offering consultations to smooth the process. Once that deadline passes, penalties will kick in for any agency that is still unregistered.
The investigations have sparked conversations on how many unregistered agencies there might be. There’s concerns that the system for registration isn’t enforced properly. For some fans, it’s causing them to question if going independent is sustainable for stars who have limited experience with the real-world. Most idols and actors live sheltered lives due to their profession and might not realize the registration process even exists.
Running your own agency isn’t just about creative autonomy. You have to navigate the same laws that govern everyone else in the industry. Freedom is possible, as long as you read the fine print.
