Art Planning Operators Skipping Written Contracts Face Fines Up to 5 Million Won

Amendment to the Enforcement Decree of the 'Artist Welfare Act' to Take Effect from the 4th of Next Month
Investigation of Violations and Authority to Issue Correction Orders Specified... Reporting Channel is the Artist Welfare Foundation

A legal basis has been established to protect artists who did not draft written contracts or whose contracts did not specify revenue sharing.

The Ministry of Culture, Sports and Tourism announced on the 27th that the amendment to the "Enforcement Decree of the Artist Welfare Act" passed the Cabinet meeting on the 26th and will take effect from the 4th of next month. According to the 2018 survey on artists, 76% of full-time artists are freelancers. Although written contracts became mandatory in 2016, only 37.3% of artists had experienced them. Many contracts also lacked key provisions, resulting in numerous damages.

The newly established authority to investigate violations of written contracts and issue corrective orders, stipulated in the amendment, includes the obligation for cultural and artistic planners to retain contracts for three years and sets standards for fines, ensuring the effectiveness of the written contract mandate system. When the Ministry of Culture, Sports and Tourism receives reports from artists who did not have written contracts or whose contracts lack specified items, it can initiate investigations. If violations are confirmed, orders to include specified items in the contract and to provide the contract will be issued. Refusal to comply may result in fines up to 5 million KRW.

The Korea Artist Welfare Foundation is responsible for receiving reports and providing consultations. It supports not only the receipt of violation reports but also contract drafting consultations, legal advice, and contract education. A Ministry of Culture, Sports and Tourism official stated, “With the implementation of the artist employment insurance system approaching, the importance of concluding written contracts has increased,” adding, “We will strengthen cooperation with related organizations to support not only damage relief but also contract drafting.”