CEO of Double K Film & Theater
[Asia Economy Reporter Moon Chaeseok] The Anti-Corruption and Civil Rights Commission (ACRC) has recommended that local governments nationwide and the Ministry of Culture, Sports and Tourism improve regulations on abusive practices related to rental fees for performance and exhibition venues. The problematic practice involved charging the full venue usage fee as a penalty even when cancellations were made before the rental date. The ACRC has adjusted the penalty fee cap to a maximum of 20%.
On the 22nd, the ACRC announced a plan titled "Enhancing Transparency in Public Cultural Facility Rentals," which includes measures to improve penalty fees for performance venues. The plan stipulates that if a renter cancels by a certain date before the rental day, the full prepaid amount will be refunded. Additionally, the penalty fees and contract deposit caps are limited to within 10-20% of the usage fee.
Earlier, on the 7th, after a resolution by the plenary committee, the ACRC recommended these improvement measures to local governments nationwide and the Ministry of Culture, Sports and Tourism. According to the ACRC, related agencies including the Ministry plan to complete implementation by September next year.
The ACRC’s investigation revealed that some performance venues collected additional usage fees when profits were made. Some venues demanded contract deposits amounting to 30-50% of the rental fee. There were even cases where venues charged 100% of the rental fee as a penalty for cancellations made before the usage date.
Such abusive practices have been criticized for pushing the cultural and artistic sectors, already struggling due to the impact of the novel coronavirus disease (COVID-19), to the brink of collapse.
Rental regulations have also been applied arbitrarily. Certain groups were given preferential selection benefits, and rental fees for the same venue varied up to 16 times depending on the nature and genre of the performance. Some venues required unnecessary prior consultations, and issues were found where the results of rental review committees were not disclosed.
In response, the ACRC included provisions related to rental announcements in this plan. Rentals are to follow the bidding announcement procedures under national contract laws. The rental review committees are required to have at least 50% external members to eradicate corrupt solicitations.
Gwon Seok-won, Director of the Policy Bureau for Rights Improvement at the ACRC, said, "If the new rental system improvement plan is established, it will help the cultural and artistic sectors struggling due to COVID-19."
Earlier, on the 20th, Kim Suro, CEO of Double K Film & Theater, expressed, "It feels like a difficult time as if I had committed some sin in a past life," during a meeting with Lee Nak-yeon, leader of the Democratic Party of Korea, and representatives from the performance and cultural arts sectors.
Kim said, "It's rare to experience such a mental breakdown in life. It's painful," and appealed, "Even when performances are canceled, we have to pay 100% of the rental fee."
In response, Lee said, "Whether we go to a hotel or take a plane, no one pays 100% if they don't go or fly," adding, "Charging 100% of the rental fee for unused time is extremely unreasonable. I hope the Ministry of Culture, Sports and Tourism will step in to investigate the situation."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
