The Ministry of Culture, Sports and Tourism (MCST) has announced plans to reform its registration system after singer CL and the head of actor Kang Dong-won's talent agency received suspended indictments for operating unregistered entertainment agencies.
The Seoul Western District Prosecutors' Office issued suspended indictment decisions on June 23 for those investigated on charges of violating the Popular Culture and Arts Industry Development Act, according to prosecution and entertainment industry sources on Wednesday. The decisions reportedly took into account that the individuals committed the violations without fully understanding the law and promptly registered their companies once they became aware of the requirement. The MCST had also operated a registration guidance period for unregistered agencies from September to December last year as part of efforts to bring them into compliance.
CL is accused of operating her one-person agency "Very Cherry," established in 2020, for approximately five years without registering with the MCST. Similar allegations were raised against Kang Dong-won, though Kang himself was cleared by police as he was found not to have been involved in the agency's operations. Only Agency CEO "A" was referred to prosecutors.
The investigation began after complaints were filed through the government's civil petition system, Kukmin Shinmungo, alleging that the agencies of Kang Dong-won, CL and others had violated the Popular Culture and Arts Industry Development Act by failing to meet registration requirements. The law stipulates penalties of up to two years in prison or fines of up to 20 million won ($14,500) for operating talent agencies without registering with the MCST.
In a statement released the same day, the MCST said it had operated a "mass registration guidance period" last year "to foster an environment of legal compliance across the industry and establish a sound industrial order in connection with cases of entertainment agencies failing to fulfill their registration obligations."
The ministry added that the guidance period "was an administrative measure to resolve unregistered status caused by simple administrative oversights and to encourage voluntary registration. It is separate from judicial sanctions and does not grant immunity or exemption from punishment for illegal acts."
The MCST noted that new agency registrations during the guidance period increased approximately 50 percent compared with the same period a year earlier, indicating some effectiveness. However, unregistered cases continue to be identified. The ministry said it is currently conducting a fact-finding survey with local governments, which have been delegated agency registration duties, and will take legal action including referrals for investigation based on the results.
The ministry added that it plans to review mid- to long-term improvements to the registration system, including measures that take into account so-called one-person agencies.