Singer CL and the head of actor Gang Dong-won's agency, who had been under investigation on suspicion of operating an unregistered agency, received suspended indictments.
According to legal sources on the 25th, the Seoul Western District Prosecutors' Office on the 23rd issued suspended indictments to CL and A, the head of Gang Dong-won's agency, who are suspected of violating the Popular Culture and Arts Industry Development Act.
A suspended indictment means the charges are recognized, but the prosecutor decides not to bring the suspect to trial after considering mitigating circumstances.
Prosecutors were said to have taken into account that CL and A committed the offense without fully understanding the relevant law and that, once they became aware of it, they promptly registered the company.
Earlier, Gang Dong-won was booked on suspicion of directly running a management agency but was cleared at the police stage. After that, only A was referred to prosecutors. CL is suspected of operating a one-person agency, "Very Cherry," established in 2020, for about five years without registering with the Ministry of Culture, Sports and Tourism.
The case began when a citizen filed a complaint through the People's Sinmungo, saying, "Gang Dong-won and CL's management agencies are not complying with the registration requirement."
If one conducts business in violation of the Popular Culture and Arts Industry Development Act, they may face up to two years in prison or a fine of up to 20 million won.
However, celebrities who were not familiar with this have repeatedly caused controversy by operating unregistered agencies. In response, the Ministry of Culture, Sports and Tourism operated a "comprehensive registration guidance period for popular culture and arts management businesses" through the end of last year. According to the Ministry of Culture, Sports and Tourism (MCST), new registrations for management businesses during this period increased by about 50% from the same period a year earlier.
An official at the Ministry of Culture, Sports and Tourism (MCST) said, "Unregistered cases are still being cited, so we are conducting a fact-finding survey with local governments that have been delegated the registration task for management businesses," adding, "Based on the results, we will take legal action under relevant regulations, including referring cases for investigation."