A growing scandal is sweeping the South Korean entertainment industry as top stars, including actor Kang Dong Won, singer Song Ga In, and veteran pop star Kim Wan Seon, have reportedly been operating their talent agencies without the legally required government registration.
Kang Dong Won established his agency, AA Group, in 2023 after leaving YG Entertainment. Trot superstar Song Ga In and 90s icon Kim Wan Sun have also been running their own companies, none of which appear on the official government registry. A representative for Song Ga In’s agency admitted fault, stating, “We were not aware of the registration obligation. We plan to apply today.”
Under South Korean law, all entertainment planning businesses must be officially registered. This system was created in 2009 to protect artists from exploitation after a series of high-profile contract disputes and celebrity deaths rocked the industry. Operating an unregistered agency can lead to up to two years in prison or a fine of up to 20 million won ($15,000).
These revelations follow similar recent controversies involving singer Sung Si Kyung and Fin.K.L member Ock Joo Hyun, who also apologized and said they were simply unaware of the legal requirement.
The issue has now escalated, with the National Tax Service reportedly investigating some of these celebrity agencies for potential tax evasion, citing concerns that their finances may not have been handled transparently without official registration.
In response to the growing scandal, the Ministry of Culture, Sports and Tourism announced on September 18th that it is implementing a grace period, giving all unregistered agencies until December 31st to comply with the law.
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