Ministry of Culture extends deadline for stars operating unregistered talent agencies
In the world of K-pop, several prominent artists have ventured into independent label ownership, joining the ranks of Jennie, Jisoo, and Lisa of Blackpink, Donghae and Eunhyuk of Super Junior, JooE of Momoland, and Rocky of Astro. However, not all agencies in the South Korean entertainment industry have been compliant with the country's regulations.
The Act on the Development of the Public Culture and Arts Industry, enacted in 2014, obligates all entertainment management businesses to register with the Ministry of Culture, Sports and Tourism through local authorities. Several companies, either due to administrative oversight, lack of awareness, or pre-existing status, have continued operations without registration.
One such agency is TOI Entertainment, founded by musical actor and former Fin.K.L member Ock. The company has been operating without registration since its inception in 2022. Another example is SK Jaewon, a one-person agency, which was reported to the police for running without registration for 14 years. SK Jaewon claimed ignorance regarding the new registration requirements introduced by the 2014 legislation.
Violation of the law can result in penalties such as up to two years in prison or a fine of up to 20 million won ($14,416). To encourage compliance, the ministry has offered a temporary grace period for unregistered talent agencies, running from now until Dec. 31, 2021. During this period, the ministry and the Korea Creative Content Agency (KOCCA) will provide consultations to help unregistered companies complete the registration process.
The ministry also encourages entertainment agencies to voluntarily comply with the requirements under the Act on the Development of the Public Culture and Arts Industry. High-profile figures in the entertainment industry, such as Sung Si-kyung and Ock Joo-hyun, have been revealed to have operated firms without mandatory licenses.
As the deadline approaches, it is crucial for all entertainment management businesses to ensure they are in compliance with the law to avoid potential legal action. From the beginning of next year, firms that fail to comply may face investigations and referrals to prosecutors. The omission at TOI Entertainment, for instance, resulted from 'a lack of understanding of administrative procedures at the time.'
It is hoped that this grace period will provide a smooth transition for the industry, ensuring that all entertainment management businesses are registered and operating legally, thereby promoting a more transparent and fair environment for all involved.
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