More celebrities are facing legal penalties for promoting under "unregistered" one-man entertainment agencies, media outlets reported on September 18 KST.
According to sources, top entertainers such as actor Kang Dong Won, singer Song Ga In, and more are suspected of operating unregistered agencies. Kang Dong Won, who parted ways with YG Entertainment in December of 2022, set up a one-man agency known as AA Group in 2023. However, AA Group is only registered as a clothing distributor and not a popular culture and arts company. Likewise, Song Ga In established her one-man label GainDal Entertainment in September of last year with her older brother, Jo Sung Jae. When contacted for a statement, GainDal Entertainment admitted that the agency was unregistered, and ensured that it would follow the proper registration procedures as soon as possible.
Previously, singer Sung Si Kyung and singer/musical actress Ock Joo Hyun came under fire for running unregistered entertainment agencies for a number of years, issuing official apologies.
Meanwhile, according to South Korea's Law for the Development of the Popular Culture and Arts Industries, celebrities promoting under individual businesses which include more than one employee must register their company, or face administrative sanctions. Unregistered businesses may face fines of up to 20 million KRW (~ $14,500 USD).
In light of the recent buzz surrounding celebrities' operation of unregistered companies, the Ministry of Culture, Sports and Tourism has announced a grace period for the proper registration of all popular culture and arts companies by December 31 of this year. Meanwhile, the National Tax Service will be looking into potential tax evasions by unregistered companies which may have submitted incorrect income and expense reports.
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