2NE1 (2NE1) CL (CL/birth name Lee Chae-rin) is reported to have been referred to prosecutors for operating a one-person agency without registration.
According to a Sports Kyunghyang report on the 22nd, the Yongsan Police Station in Seoul recently sent CL, the corporation, A, the representative of Gang Dong-won's agency, and the corporation to the Seoul Western District Prosecutors' Office without detention on charges of violating the Popular Culture and Arts Industry Development Act.
After CL's contract with YG Entertainment expired, she established the one-person agency Very Cherry in 2020 and began independent activities. However, it was revealed that last year the corporation operated in an unregistered state for about five years and seven months without registering as a popular culture and arts planning business, sparking controversy.
Meanwhile, a complainant filed a complaint against the unregistered operating agency, and CL, who had directly run the company as its representative, was handed over to prosecutors along with the corporation Very Cherry on charges of violating the Popular Culture and Arts Industry Development Act.
A, the representative of AA Group, the agency of Gang Dong-won, was also sent on charges of operating the company for two years and nine months in an unregistered state after establishing the corporation in January 2023. However, in Gang Dong-won's case, it was reported that he was cleared of charges after it was recognized that he, as an actor under the agency, did not participate in the operation or management of the agency.
According to the Popular Culture and Arts Industry Development Act, entertainers who operate as corporations or as sole proprietors exceeding one person must register as popular culture and arts planning businesses. To register, they must meet requirements such as "at least two years of practical experience or completion of related education," "verification of disqualification reasons for the representative and executives," "search for records of sex crimes and child abuse," and "securing an independent office and submitting a lease contract," among others. Even after a registration certificate is issued, qualifications are maintained only if statutory training is completed annually.
The system was fully implemented in July 2014 and was introduced to protect entertainers' rights, secure industry transparency and prevent the proliferation of agencies. If management services are provided without registering as a popular culture and arts planning business, one may face up to two years in prison or a fine of up to 20 million won.
But as reports of agencies that operated in an unregistered state last year emerged one after another, the Ministry of Culture, Sports and Tourism (MCST) implemented a "one-time registration guidance period" for unregistered popular culture and arts planning businesses until Dec. 31 to encourage voluntary rectification and warned of strict measures such as administrative investigations and referral to prosecutors if violated. An MCST official said the guidance period is an opportunity for the industry to self-check legal obligations and complete registration and said the ministry will create a transparent and legal planning and management environment to protect popular culture and arts workers and raise the credibility of the popular culture industry.
Meanwhile, Very Cherry said at the time the unregistered operation controversy arose, "We recently confirmed the unregistered fact and are taking it very seriously," and "we are promptly carrying out the related registration procedures." AA Group also said, "When the issue regarding failure to register as a popular culture and arts planning business arose last week, we recognized the problem that same day," and that they had "immediately applied for training and registration and are in the process of completing them."
[photo] OSEN DB
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