A red flag has been raised over the operation of one-person agencies in the entertainment industry. After Ok Joo-hyun and Sung Si-kyung, it has come to light that Gang Dong-won, Kim Wan-sun and Song Ga-in, among others, have also been running their agencies without registering as a popular culture and arts planning business, amplifying the fallout.
According to reports on the 18th, Gang Dong-won founded "AA Group" in 2023 after his contract with YG Entertainment ended, Song Ga-in established "Gaindal Entertainment" in September last year, and Kim Wan-sun set up "KW Sunflower" in 2020 with fan club operators and has been active. However, it has emerged that none of them complied with the registration requirement, sparking a backlash.
In response, the agencies have quickly issued explanations and taken measures. Song Ga-in's side said, "She intended to start activities after establishing a one-person agency, but did not recognize that part when JG Star took over management. We will submit the registration application today." Gang Dong-won's side also said, "We recognized the problem as soon as the controversy was reported, and we are proceeding with education enrollment and registration procedures." Kim Wan-sun's agency explained as well, "We are going through administrative procedures after checking with the legal team."
Earlier, Ok Joo-hyun and Sung Si-kyung were reported to have operated agencies and been active without registering as popular culture and arts planning businesses, which sparked controversy. Neither Ok Joo-hyun's agency TOI Entertainment nor the one-person agency he founded were registered as popular culture and arts planning businesses, and Ok Joo-hyun apologized, saying, "Due to ignorance of administrative procedures, some steps were omitted and I was unable to complete registration on time. This arose from my inexperience and there is no excuse."
Sung Si-kyung's side also bowed and said, "We established the corporation in February 2011 in accordance with the law at the time. Later, in January 2014, the Act on the Development of the Popular Culture and Arts Industry was enacted, introducing the registration obligation for popular culture and arts planning businesses. We did not recognize this registration obligation and therefore did not proceed with the registration process. We deeply apologize for the lack of awareness and preparation regarding the relevant laws."
Shortly afterward, Sung Si-kyung issued a second apology. On the 18th, Sung Si-kyung posted a lengthy message on his social media saying, "I sincerely apologize for causing concern to many people over matters related to me." He explained, "After debuting I moved through various companies and experienced many things, and in 2011 I established a one-person agency. Later, in 2014, with the enforcement of the Act on the Development of the Popular Culture and Arts Industry the registration system for popular culture and arts planning businesses was introduced, and I failed to recognize and implement it in time." He added, "I learned recently that this system is an important legal device to protect the rights of popular culture and arts performers, that is, affiliated entertainers, and to ensure healthy operation of the industry. It is clearly the company's fault for not recognizing the new system and not completing the required education and registration, and we deeply reflect on this. We are proceeding quickly with the related registration procedures and will correct the wrongs." He especially clarified, "I want to make it clear that failing to register was unrelated to purposes such as income omission or tax evasion. Income has been reported transparently through an accountant," and promised to be more meticulous going forward.
Netizen reaction has been heated. Regarding this controversy, internet users have expressed various opinions such as, "This is not something that can be overlooked by saying we didn't know… Laws exist to be followed," "It's shocking that celebrities who should lead by example say they didn't know the law," "Even if it wasn't for tax evasion, basic administrative procedures should have been responsibly handled," "This system is essential for transparent operation. It should be properly fixed now," and "I hope the entire industry registers and the system is established through this opportunity."
Above all, this is a weighty social issue because it is not a mere mistake but an important matter for restoring transparency and trust in the entertainment industry.
Meanwhile, the current Act on the Development of the Popular Culture and Arts Industry mandates that sole proprietors or corporations above a certain scale that manage and handle entertainers must register as a popular culture and arts planning business. Operating without registration can result in up to two years in prison or a fine of up to 20 million won.
This system has been in effect since 2014 to protect entertainers' rights and to prevent the proliferation of agencies and illegal operations. The registration process requires conditions such as at least two years of practical experience or completion of training, verification of disqualifying reasons for executives, checks for sexual offense or child abuse records, and securing an independent office. Even after registration, annual statutory training is required to maintain eligibility.
The Ministry of Culture, Sports and Tourism regards the matter seriously and will operate a "uniform registration guidance period" until Dec. 31. It warned that companies that remain unregistered after the guidance period could face strong sanctions such as administrative investigations and criminal referrals.
[Photo] OSEN DB
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