Actress Lee Hanee has been referred to prosecutors on charges of operating an entertainment management business without proper registration.
According to police on December 24 KST, the Seoul Gangnam Police Station transferred Lee Hanee, her husband identified as Mr. Jang, and their corporation Hope Project to the Seoul Central District Prosecutors’ Office without detention on charges of violating the Act on the Development of the Popular Culture and Arts Industry.
Lee and Jang established Hanee Co., Ltd. in 2015 and later changed the company’s name while continuing operations. However, it was discovered that the company had been operating without registering as a popular culture and arts planning business, a mandatory requirement under the law. At the time, Lee’s side stated that they had not been sufficiently aware of the obligation to register as a popular culture and arts planning business and therefore did not complete the registration process.
Under the current law, entertainers or agencies operating as corporations or as business entities with more than one individual are subject to legal penalties if they engage in unregistered entertainment management activities. These penalties include up to two years in prison, a fine of up to 20 million KRW, and possible business suspension.
Following the disclosure of the unregistered operation, formal complaints were filed. One complainant argued that lack of awareness cannot serve as a valid excuse, adding that this principle applies equally to public figures with significant social influence and their affiliated organizations.
The complainant further stated that Lee Hanee’s strong personal brand is inseparably tied to the substance of her management business, emphasizing that there is a constant responsibility to ensure legal compliance. Given the prolonged period of unregistered operation, the complainant asserted that both the individuals involved and the organization must be held legally and socially accountable.
Separately, Lee Hanee was ordered by the National Tax Service last September to pay an additional 6 billion KRW in taxes after her entertainment income was processed under corporate tax through Hope Project.
It was also revealed that from 2021 to 2023, the company paid approximately 2.7 billion KRW in salaries despite having no full-time employees. Additionally, although the company was founded with an initial capital of just 10 million KRW, it purchased a building worth approximately 6.45 billion KRW under the corporation’s name within two years of establishment, raising further concerns.
Lee’s agency responded by stating that it has fulfilled its tax obligations in accordance with the law as a Korean citizen, arguing that the additional tax assessment stemmed from differences in legal interpretation.
Attorney Jung Tae Won of Law Firm LKB & Partners commented that if business operations continued after the law took effect, it was the company’s responsibility to verify relevant regulations and registration requirements. He added that if registration was eventually completed and no significant intent was found, the case could, in practice, be resolved with a fine or a suspended indictment.
He also noted that rather than focusing solely on punishment, the case could serve as an opportunity to broadly review similar entertainer-owned corporations and small agencies, encouraging voluntary corrections where issues exist. Such an approach, he said, could help reduce unnecessary controversy and ensure that the regulatory system functions properly in practice.
SEE ALSO: K-Netizens react to trainee’s debut through Mnet's 'Planet C' after six survival program attempts
SHARE
