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Korean Entertainment Management Association announces firm action and decisive response to Park Na Rae controversy

AKP STAFF
Posted by K-Soul 27 days ago 17,384

The Special Ethics and Disciplinary Committee of the Korea Entertainment Management Association (KEMA) has drawn attention by releasing an official statement regarding the ongoing controversy surrounding comedian and television personality Park Na Rae.

On December 17, the committee stated, “We officially declare that we will take firm action regarding the issues revealed in the recent controversy involving public entertainer Park Na Rae.”

The key issues highlighted by the committee include alleged unregistered operation of a cultural entertainment planning business, failure to enroll managers in the four major social insurances, workplace harassment and verbal or physical abuse, illegal medical practices by unlicensed individuals, unpaid production expenses, and alleged embezzlement of company funds.

The committee emphasized, “Park Na Rae’s actions have seriously disrupted the integrity and order of the cultural entertainment industry and hindered its development. We express deep concern and regret over the turmoil and significant impact this has caused across the entertainment sector.”

They further explained, “According to media reports, Park Na Rae appears to have established a corporation with her mother as CEO and operated a cultural entertainment planning business for over a year without proper registration. Under the Cultural Industry Promotion Act, operating such a business without registration can result in up to two years in prison or a fine of up to 20 million KRW (approx. 13,537 USD).

The committee urged law enforcement to conduct a thorough investigation and enforce appropriate punishment, calling on Park Na Rae to provide an official explanation and fully cooperate with the investigation.

Regarding insurance and labor issues, the statement noted, “Former managers have claimed that despite repeatedly requesting enrollment in the four major social insurances, Park Na Rae failed to comply. This inability to properly resolve the issue represents illegal and irresponsible behavior, and warrants thorough investigation and sanctions.”

On workplace harassment, the committee commented, “If the reports are accurate, Park Na Rae must clarify the facts and issue a formal apology. The committee will take all possible measures if such actions are confirmed.”

Regarding allegations of illegal medical procedures, the committee stated, “If proven, these acts constitute serious criminal behavior that damages the reputation of a public entertainer. Thorough investigation and an official explanation from Park Na Rae are required.”

On unpaid production expenses and alleged embezzlement, the statement explained, “Reports claim that managers used their personal funds for work-related costs that were not reimbursed, which could be considered exploitation. Additionally, allegations suggest that company funds were paid to a former boyfriend as salary and that approximately 300 million KRW (approx. 203,062 USD) was transferred for a lease deposit. If verified, these constitute clear embezzlement, and strict investigation is warranted.”

The committee concluded, “This controversy highlights the lack of effective control systems for public entertainers with social influence. Stars’ misconduct can cause social repercussions if not properly addressed. Public figures must act responsibly, seek understanding from the public, and engage in sincere self-reflection before continuing professional activities.”

KEMA’s Special Ethics and Disciplinary Committee emphasized that moving forward, they will engage in serious discussions with entertainers to promote accountability and proper relationships between managers and artists, ensuring the Korean entertainment industry becomes more transparent and responsible.

Official Statement from KEMA:

"The Special Ethics and Disciplinary Committee of the Korea Entertainment Management Association (KEMA) hereby officially declares that it will take firm action regarding the issues revealed in the recent controversy surrounding public entertainer Park Na Rae.

The committee has determined that Park Na Rae’s actions seriously disrupt the integrity and order of the cultural entertainment industry and hinder its development. It expresses deep concern and regret over the widespread turmoil and significant impact her conduct has caused across the entertainment sector.

Accordingly, in relation to the fact that a complaint has been filed through the People’s Petition system (Gukmin Sinmungo) against Park Na Rae for charges including special injury, violations of the Medical Service Act, and the Cultural Industry Promotion Act, the committee issues the following statement:

A. Allegations Regarding Unregistered Cultural Entertainment Planning Business and Failure to Enroll Managers in Social Insurance

1. Despite the Ministry of Culture, Sports and Tourism recently providing guidance to unregistered cultural entertainment planners and offering a compliance period for registration, media reports indicate that Park Na Rae established a corporation with her mother as CEO and operated a cultural entertainment planning business for over a year without completing registration. Under the Cultural Industry Promotion Act, operating such a business without registration can result in up to two years of imprisonment or a fine of up to 20 million KRW.

The committee urges law enforcement to conduct a thorough investigation and ensure proper punishment and calls on Park Na Rae to provide an official explanation and fully cooperate with the investigation.

2. Media reports indicate that Park Na Rae contracted with her managers as freelancers (subject to 3.3% withholding tax) without formal employment contracts and failed to enroll them in the four major social insurances. Meanwhile, her mother and former boyfriend were reportedly registered as company employees and covered by social insurance. Former managers have claimed that despite repeated requests, Park Na Rae did not enroll them. This failure to address the matter, despite having an opportunity to do so, reflects illegal and irresponsible avoidance of responsibility.

The committee stresses that law enforcement must thoroughly investigate why the managers were not enrolled in the social insurance system and, if there was any evasion of reasonable contractual obligations, proper sanctions must be applied.

B. Allegations of Personal Errands, Verbal Abuse, and Physical Assault Toward Managers (Workplace Harassment)

According to media reports, former managers claim that Park Na Rae required them to attend drinking parties, run errands, clean up after events, perform family-related tasks, and act as domestic helpers. They also allege verbal abuse for not drinking and injuries caused by glasses thrown in anger.

If these reports are accurate, Park Na Rae must clarify the facts and issue a formal apology.

The committee emphasizes that forcing managers to perform unrelated tasks or engaging in “abusive power” behavior is a deep-rooted issue that must be eradicated in the entertainment industry. A healthy manager-artist relationship should be built on mutual respect and proper professional conduct. Should such acts be confirmed, the committee will take all possible measures at the association level.

C. Allegations Regarding Illegal Medical Procedures by Unlicensed Individuals (“Injection Aunt” and “IV Aunt”)

Media reports claim that Park Na Rae received illegal medical treatments from individuals referred to as “Injection Aunt” and “IV Aunt,” who are not licensed medical professionals. If she was aware of this, it constitutes a serious criminal offense, potentially violating the Medical Service Act. Additionally, there are allegations of injections and prescriptions of psychotropic drugs administered by these unlicensed individuals.

If confirmed, these actions would constitute criminal conduct that damages the dignity of a public entertainer. The committee calls for thorough investigation by the relevant authorities and an official explanation from Park Na Rae.

D. Allegations of Unpaid Production Expenses and Misuse of Company Funds (Embezzlement)

1. According to statements from former managers, certain work-related costs, including personal expenditures, ingredient purchases, and alcohol costs, were not reimbursed. If these claims are true, managers used their personal funds to cover work expenses for Park Na Rae’s entertainment activities without reimbursement, which constitutes a severe issue akin to wage theft. The committee will investigate the facts and take appropriate strong measures.

2. Media reports also indicate that Park Na Rae was accused of paying company funds to her former boyfriend. The complaint alleges that he was falsely registered as a company employee and received approximately 4 million KRW per month (totaling around 44 million KRW) from January to November, and that approximately 300 million KRW was transferred from company accounts for a lease deposit. If verified, these actions constitute clear embezzlement, and thorough investigation by the authorities is required.

Conclusion

The Park Na Rae controversy highlights the lack of effective control systems for entertainers with social influence. When misconduct occurs, it can escalate into significant social repercussions if not properly addressed. Public entertainers benefit from the public’s attention and support and have a heightened responsibility as public figures.

Continuing entertainment activities without demonstrating sincere self-reflection, accountability, and a formal explanation to the public should be avoided.

Moving forward, the committee will encourage in-depth discussions with relevant entertainers to foster public understanding and accountability. This case will serve as an opportunity to ensure proper manager-artist relationships in the industry and to promote a more transparent and high-quality Korean entertainment industry. The committee reaffirms its commitment to leading the industry’s development responsibly.

Thank you."

SEE ALSO: Park Na Rae’s former manager remains in US as police and labor investigations are delayed

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