[Exclusive] Kang Dongwon, Song Gain, Kim Wansun Also Involved... Unregistered One-Person Agencies Spark Widespread Controversy

Unregistered Operations of Celebrity Agencies Continue to Surface
"'Tolerated Practice' Exposed" Following Sung Sikyung and Ock Joohyun
Ministry of Culture Runs Registration Guidance Period for Agencies Through Year-End
National Tax Service

It has recently come to light that several celebrities have been operating their own management agencies for years without registering as "popular culture and arts planning businesses," a legal requirement. This revelation has sparked widespread controversy.

(From left) Actor Kang Dongwon, singer Song Gain, singer Kim Wansun.

According to the entertainment industry on September 18, it was confirmed that actor Kang Dongwon, singer Song Gain, and singer Kim Wansun have been running their own agencies without completing the required registration process. Previously, the agencies of singer Sung Sikyung and musical actor and singer Ok Joohyun also faced similar scrutiny for the same issue.

Kang Dongwon established "AA Group" in 2023 with CEO Seol Hyunjung after his contract with YG Entertainment ended. While expanding his activities by running a clothing brand business with CEO Seol, the company was not found on the list of registered popular culture and arts planning businesses.

Song Gain founded "Gain Dal Entertainment" in September last year. According to the corporate registry, her older brother Jo Sungjae is listed as an internal director, and JZ Star is in charge of publicity and external partnerships. However, Gain Dal Entertainment was also not included in the registration list.

Kim Wansun has been active since establishing "KWSunflower" with her fan club management team in 2020. The registry confirms that Kim Wansun herself is listed as the company’s CEO.

Regarding this issue, a representative from JZ Star, which has a management contract with Song Gain, stated, "We were not aware of the registration obligation. We plan to apply today and will take measures to ensure there are no further issues."

According to the Act on the Development of Popular Culture and Arts Industry, celebrities operating as corporations or as sole proprietors with more than one person must register as popular culture and arts planning businesses. The requirements for registration include: at least two years of relevant work experience or completion of related education; verification that the CEO and executives do not have any disqualifying factors; background checks for sexual offenses and child abuse; securing an independent office and submitting a lease agreement. Failure to meet these conditions can result in denial of registration, or, if already registered, cancellation of registration and administrative sanctions after an inspection.

The registration process is handled by the relevant local government, and it takes about 15 days to complete. Several documents are required, including a copy of the business registration certificate, a certified copy of the corporate registry, the office lease agreement, and consent forms for criminal background checks related to sexual offenses. Even after receiving the registration certificate, annual mandatory training must be completed to maintain the qualification.

This system was introduced in 2009 following exclusive contract disputes and celebrity deaths in the entertainment industry. Its goals are to protect the rights of celebrities, ensure industry transparency, and prevent the proliferation of agencies. It has been fully enforced since July 2014. Operating a management business without registration can result in imprisonment for up to two years or a fine of up to 20 million won.

When it was revealed that the agencies of Sung Sikyung and Ok Joohyun were also operating without registration, they apologized, citing a "lack of awareness of the law," and belatedly began the registration process. Sung Sikyung had been active through SK Jaewon, where his older sister is the CEO, since 2011, but the agency remained unregistered for over ten years. Ok Joohyun also operated TOI Entertainment, established in 2022, without registering it.

With additional cases involving Kang Dongwon, Song Gain, and Kim Wansun coming to light, criticism is mounting throughout the industry over what is seen as a "tacitly condoned practice." In particular, many one-person agencies formally establish corporations by appointing family members or acquaintances as representatives, often skipping the actual registration process. An entertainment industry insider commented, "This not only raises issues of fairness with agencies that strictly follow registration requirements, but also calls into question the legal validity of contracts," adding, "It is a practice that has effectively been condoned within the industry."

The Ministry of Culture, Sports and Tourism is currently running a "comprehensive registration guidance period for popular culture and arts planning businesses" until December 31, encouraging voluntary compliance. A ministry official emphasized, "This guidance period is an opportunity for the industry to review and fulfill its legal obligations on its own. We aim to create a transparent and lawful management environment to protect popular culture and arts professionals and enhance the industry’s credibility."

As the situation escalates, the National Tax Service is reportedly also paying attention to potential tax evasion by some celebrity agencies. The tax authorities plan to provide guidance on major types of tax evasion related to one-person shareholder corporations before corporate tax filings, and intend to respond strictly to illegal tax evasion through tax audits and other measures.

No Jongun, managing attorney at Jonjae Law Firm, pointed out, "This law was established as a safeguard because of frequent cases of agencies committing embezzlement or impersonation fraud. Not knowing the law does not exempt one from liability. The responsibility to verify legal obligations lies with the individual, and there have already been similar cases where sanctions were imposed."