Singer Seong Si-kyung's one-person agency was handed over to the prosecution's investigation unit on charges of operating an "unregistered agency," with the agency's representative, his sister, being sent for prosecution while Seong Si-kyung received a decision of "no indictment."
On the 10th, the Seoul Yeongdeungpo Police Station said it recently forwarded Seong Si-kyung's sister, a person surnamed Seong, and the agency SK Jaewon to the prosecution without detention on charges of violating the Popular Culture and Arts Industry Development Act.
SK Jaewon is a one-person agency with Seong Si-kyung as its only affiliated artist, and Ms. Seong serves as the CEO. The problem is that the corporation carried out agency business without registering for "popular culture and arts planning business" with the Ministry of Culture, Sports and Tourism.
Article 26 of the current Popular Culture and Arts Industry Development Act mandates that anyone wishing to run an entertainment management business above a certain scale must register for "popular culture and arts planning business" with the Minister of the Ministry of Culture, Sports and Tourism (MCST). Those who violate this and continue operations face up to two years in prison or a fine of up to 20 million won.
The police applied the charges against SK Jaewon and Ms. Seong, saying, "It is recognized that they carried out planning business in violation of the registration obligation." However, they decided not to indict Seong Si-kyung, who had also been accused, judging that there was a lack of objective circumstances to conclude he directly participated in running the agency. The implication was that the actual operator of the corporation was the representative Ms. Seong, and Seong Si-kyung was closer to the status of an artist.
Earlier, SK Jaewon said in a statement, "After establishing the corporation in February 2011, we did not recognize that the registration obligation for planning businesses was newly introduced in the Popular Culture and Arts Industry Development Act enacted in 2014," and explained, "We lacked awareness and preparation regarding the relevant laws and regulations. We deeply apologize." The company also said at the time that it was belatedly undertaking the registration process.
Seong Si-kyung also issued a personal statement around the same time, saying, "It was clearly the company's mistake and I deeply reflect that we failed to recognize the new system and complete the required education and registration," acknowledging the violation of the law itself. However, he emphasized, "I want to make it clear that the omission of registration was unrelated to income omission or tax evasion. I have been transparently reporting income through a tax accountant."
Meanwhile, the case will be decided guilty or not guilty after the prosecution's supplementary investigation and its decision on whether to indict.
[Photo] OSEN DB
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