CL, a member of the group 2NE1, and the heads of her agency and actor Kang Dong-won's agency have been the subject of a police investigation for failing to fulfill the legal requirement of registering as entertainment agencies. The outcome of this case has attracted significant attention within the entertainment industry.

On January 22, the Yongsan Police Station in Seoul announced that CL, the respective corporations, Kang Dong-won's agency representative—identified as 'A'—and their company have been referred to the Seoul Western District Prosecutors' Office without detention on charges of violating the Act on the Development of Popular Culture and Arts Industry. According to the police investigation, CL established a one-person agency in 2020 but operated the company for approximately five years and seven months without registering it as a popular culture and arts planning business with the relevant district office.

As CL directly managed the corporation as its representative, she has been named as a suspect in the official referral. Similarly, 'A', head of Kang Dong-won's agency, was found to have run the agency for about two years and nine months since January 2023 without completing the necessary registration procedures.

However, it was confirmed that Kang Dong-won himself was cleared of all charges, as he was not involved in the management or operation of the agency and focused solely on his acting career.

This case came to light after a whistleblower pointed out that “the Act on the Development of Popular Culture and Arts Industry exists to protect vulnerable artists such as minors and trainees, and to establish fair business practices.” The whistleblower criticized the issues associated with operating agencies without the required registration for an extended period.

They argued that such unregistered operations could undermine the protection of newcomers and youth, damage business trust, and disrupt market order. Under current law, it is mandatory to register as a popular culture and arts planning business in order to operate an entertainment agency. Violation of this requirement may result in up to two years of imprisonment or fines of up to 20 million KRW.

Recently, there have been several cases where celebrities have established one-person agencies but neglected their registration obligations, raising awareness about the necessity of adhering to the relevant regulations.

In response, the Korea Entertainment Management Association issued a statement saying, “It is a serious matter that well-known celebrities, who are expected to adhere to the law, have been operating in an unregistered state for years.” The association also signaled stronger measures, including potential legal action, moving forward.

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=MHN DB