Singer Kim Wan Sun and her agency have been referred to prosecutors over allegations of operating an entertainment management business without proper registration.
According to the Yongin Dongbu Police Station in Gyeonggi Province, authorities determined that violations of the Popular Culture and Arts Industry Development Act were substantiated and forwarded the case to the Suwon District Prosecutors Office on March 5 without detention.
Kim Wan Sun established her one person agency KW Sunflower in 2020 and was listed as its representative director in corporate records. However, the company allegedly conducted profit making activities for around five years without completing the mandatory registration as a popular culture and arts planning business with the relevant local government.
After the issue surfaced last September, Kim Wan Sun’s side acknowledged that the registration procedure had been overlooked and stated that administrative registration was underway. The company reportedly completed the process in November.
Despite the subsequent registration, police concluded that the earlier period of operation still constituted a legal violation and decided to refer both Kim Wan Sun and the agency corporation to prosecutors.
The case comes amid growing scrutiny of one person agencies and family run entertainment corporations in the Korean entertainment industry. Recently, companies connected to artists such as CL, Kang Dong Won, and Sung Si Kyung have also been referred to prosecutors on similar allegations of operating without proper registration.
Industry experts say such practices can harm transparency in the entertainment business. Legal professionals have also noted that failure to register entertainment planning businesses could potentially expand into broader issues related to taxation and corporate compliance.
Authorities are expected to continue monitoring compliance with registration requirements in the entertainment sector to prevent similar controversies in the future.
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