The controversy over celebrities operating one-person agencies without registering ultimately ended with a decision of suspended prosecution.
According to a report by Sports Kyunghyang on the 25th, the Uijeongbu District Prosecutors' Office Namyangju Branch and the Seoul Western District Prosecutors' Office issued suspended prosecution decisions for those accused of operating a popular culture and arts planning business without registration, including the agency heads of singer Ok Joo Hyun and actor Gang Dong-won. It was reported that the older brother of singer Song Gain, who had been referred earlier on the same charge, also received the same disposition.
The reason they were in trouble was that they ran "one-person agencies" while failing to register for the popular culture and arts planning business, which is legally required.
Ok Joo Hyun was accused of operating the agency she founded, "TOI Entertainment," without registration, and Gang Dong-won's agency AA Group was also embroiled in controversy for operating without registration. However, Gang Dong-won himself was judged not to have been directly involved in running the agency and was cleared of charges, and only the agency's representative and the corporation were referred to the prosecution.
In Song Gain's case, she came under scrutiny after it was revealed that the agency run by her older brother had continued activities without completing the registration process. Song Gain established the one-person agency Gain Dal Entertainment on Sept. 2024 and listed her older brother as an inside director. However, last year it was revealed that Gain Dal Entertainment had not registered as a popular culture and arts planning business, which sparked controversy.
Regarding this, Jeiji Star, which manages Song Gain, said that Song Gain intended to carry out activities after establishing Gain Dal Entertainment as a one-person agency, but is currently active as an artist of the company after signing an exclusive contract with the company. They said that after the establishment of the one-person agency, Jeiji Star took over management duties and was not aware of that aspect, and the police decided not to prosecute, judging that Song Gain was not listed as an executive on the company's registry, had no equity, and was a protected subject under the Popular Culture and Arts Industry Development Act.
Under the Popular Culture and Arts Industry Development Act, those who intend to operate an entertainment planning business must register with the Ministry of Culture, Sports and Tourism, and if they violate this, they can face up to two years in prison or a fine of up to 20 million won. In fact, controversy grew as it emerged that all of them had reportedly operated agencies for years without registration.
In particular, criticism grew as suspicions arose that some celebrities established one-person agencies for tax reduction and other purposes.
Nevertheless, the prosecution issued suspended prosecution decisions for them. It was reported that a lack of awareness of illegality and the fact that they later completed the registration procedures were taken into consideration.
[Photo] OSEN DB
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