Entertainment association to urge government to take legal action against nonregistered agencies

The Korea Entertainment Management Association’s disciplinary and ethics body will urge the government to take action against celebrities operating independent labels without registering their agencies, following reports of high-profile cases.

From left: Singer Sung Si-kyung, singer CL from girl group 2NE1 and actor Gang Dong-won [NEWS1]

The Korea Entertainment Management Association’s disciplinary and ethics body said on Monday that it would urge the government to take action against celebrities who operate independent labels without registering their agencies, following reports of multiple high-profile cases.

At least 17 celebrities have run management agencies either registered under their names or their families, with the longest running agencies operating for over a decade without adhering to current legislation, the Korea Entertainment Management Association said in a statement.

According to the association, celebrities who allegedly have not followed legal guidelines include actors Gang Dong-won, Song Kang-ho and Lee Ha-nee; entertainers Park Na-rae and Nam Hee-seok; and singers Sung Si-kyung, Ok Joo-hyun and CL, a member of the girl group 2NE1.

Such actions violate the Popular Culture and Arts Industry Development Act.

Under the law, celebrities and talent agencies operating as corporations or sole proprietorships with more than one individual are required to register as arts management businesses with the Ministry of Culture, Sports and Tourism through their local government offices.

The system, which requires company representatives to complete training in ethics and management practices, was introduced in the wake of exclusive contract disputes and fatal accidents involving entertainers in 2009 and has been enforced since 2014.

“Celebrities [...] must face severe punishment for operating without registering as popular culture and arts agencies,” the Korea Entertainment Management Association said.

“Even if they later registered, that does not excuse years of [...] sidestepping regulatory oversight. That kind of behavior disrupts order across the industry and constitutes a clear violation of the law, warranting strict punishment without leniency.”

The association said it would continue to accept tip-offs, file complaints and petition for strict punishment with relevant agencies.

The Korea Entertainment Management Association's Reward and Punishment Coordinating Committee, founded in 2009, works to promote sound industry practices and resolve conflicts through self-policing efforts.

Its statement comes after local media outlets reported that celebrities evaded taxes by incorrectly filing them at their self-run agencies. Singers Sung and Ok admitted to operating their agencies without registering but denied committing tax evasion.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]