Kang Dong-won, Song Ga-in, Kim Wan-sun… Scandal Over Unregistered One-Person Agencies Spreads

After several celebrities established their own individual agencies, it has been revealed that they continued their activities for years without completing the legally required ‘registration for popular culture and arts planning business,’ causing a growing ripple effect.

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(From left) Actor Kang Dong-won, singer Song Ga-in, singer Kim Wan-sun.

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As of the 18th, it has been confirmed in the entertainment industry that actor Kang Dong-won, singer Song Ga-in, and singer Kim Wan-sun, among others, have been operating their agencies without undergoing the registration process. Previously, the agencies of singer Sung Si-kyung and musical actor and singer Ock Joo-hyun were also criticized for the same issue.

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Kang Dong-won established ‘AA Group’ in 2023 alongside CEO Seol Hyun-jung after his contract with YG Entertainment ended. While expanding their business to include a clothing brand, the corporation was not found on the list of registered popular culture and arts planning businesses.

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Song Ga-in founded ‘Gaindal Entertainment’ in September of last year. In the registry, her older brother Cho Sung-jae is listed as an internal director, with promotions and external collaborations handled by JJ Star. However, Gaindal Entertainment was also not included in the registration list.

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Kim Wan-sun has been active since establishing ‘KW Sunflower’ with her fan club management in 2020. She is confirmed to be listed as the representative in the registry.

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A representative from JJ Star, which has a management contract with Song Ga-in, stated, “We were unaware of the registration requirement. We plan to apply today and will take steps to address any issues.”

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According to the Act on the Development of the Popular Culture and Arts Industry, any entertainer who operates as a corporation or an individual business operator with more than one person must register as a popular culture and arts planning business. To register, one must meet requirements such as ▲at least two years of practical experience or related education completion ▲verification of reasons for disqualification of representatives and executives ▲check of any sexual crime or child abuse history ▲securing an independent office and submitting a lease contract, among others. Failure to meet these conditions can result in registration denial, and even after registration, failure to pass the fact-finding survey can lead to cancellation of registration and administrative sanctions.

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The local government in charge handles the registration process, which takes about 15 days. Various documents are required, including a copy of the business registration certificate, a certified copy of the corporate registry, an office lease contract, and a consent form for a check of sexual crime history. After the issuance of the registration certificate, annual legal education must be completed to maintain qualification.

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This system was established in 2009 in response to disputes over exclusive contracts in the entertainment industry and incidents of celebrity deaths. Its goals are to protect the rights of celebrities, ensure industry transparency, and prevent the proliferation of agencies. It began full implementation in July 2014, and operating management activities without registration can result in imprisonment of up to two years or fines up to 20 million won.

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After Sung Si-kyung and Ock Joo-hyun’s agencies were found to be operating unregistered, which sparked controversy, they apologized for their “lack of awareness of the law” and belatedly began the registration process. Sung Si-kyung had been operating through SK Jaewon, where his older sister is the representative, since 2011 but was unregistered for over 10 years. Ock Joo-hyun also ran TOI Entertainment, established in 2022, without registering.

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With additional cases now confirmed, such as Kang Dong-won, Song Ga-in, and Kim Wan-sun, criticism is growing throughout the industry over this ‘tacitly allowed practice.’ Especially in the case of one-man agencies, it is common to appoint a family member or acquaintance as a representative, forming the corporation only on paper, which frequently leads to omitted registrations. An industry insider commented, “Not only is there an issue of fairness with agencies that strictly observe the registration, but there may also be doubts about the legal validity of contracts,” expressing that this is a prevalent practice quietly accepted in the industry.

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The Ministry of Culture, Sports and Tourism is running a ‘popular culture and arts planning business registration encouragement period’ until December 31 to encourage self-regulation. A Ministry official emphasized that this period is an opportunity for the industry to self-check and complete registration of their legal obligations and said, “We aim to create a transparent and legal management environment to protect popular culture artists and enhance industry reliability.”

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As the situation escalates, the National Tax Service is reportedly also paying attention to the possibility of tax evasion by some celebrity agencies. This is due to the uncertainty in handling revenue and expenses without official registration. The tax authorities plan to closely examine the revenue structures and tax payment status during the unregistered operation process and will initiate tax investigations if necessary.

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Noh Jong-eon, a representative attorney at the law firm Jonjae, stated, “This law is a safety measure established due to numerous cases of embezzlement or impersonation fraud committed by agencies,” and emphasized, “Ignorance does not exempt one from illegality. The responsibility to verify legal obligations rests with the individual, and there have been cases where similar precedents have resulted in sanctions.”

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