Park Jungmin, Ji Seokjin, Yoon Jongshin, and Lee Dongguk Also Register Late... 500 Hidden One-Person Agencies Rush to Register

6,153 Popular Culture and Arts Agencies Registered by 2025
Last-Minute Registrations Surge Ahead of Grace Period Deadline
Ministry Plans Investigations into Unregistered Agencies
Anyone Can Become a Representative with Unverified '40-Hour T

A large number of unregistered one-person agencies, operated by celebrities or their family members, have recently registered as official pop culture and arts planning businesses. This comes about four months after The Asia Business Daily exclusively reported on the illegal operations of one-person agencies in September of last year. As the voluntary reporting and guidance period set by the Ministry of Culture, Sports and Tourism ended on December 31, hundreds of agencies rushed to obtain registration certificates out of concern for potential crackdowns.

According to the Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency, as of December 31, 2025, there are a total of 6,153 officially registered agencies. This is an increase of more than 500 agencies in just four months, up from about 5,600 in September of last year. Notably, 177 agencies registered in December alone, as the guidance period was coming to an end. About 70% of the total increase in 2024 (approximately 570 agencies) occurred within just three to four months.

Top Stars Rush to Register... Seeking to Avoid Legal and Tax Risks

Former soccer player Lee Dongguk registered "Daebak Dreams," which he established in 2021, only on December 30 of last year. Singer Yoon Jongshin also recently reported "Monthly Yoon Jongshin," which he has operated since 2011, and Hong Seokcheon registered "My S Entertainment," founded in 2014, in November of last year. Actors such as Song Kangho, Choi Soo-jong, Song Yoona, Park Jungmin, Pyo Yejin, Jung Sanghoon, as well as broadcasters Nam Heesuk, Ji Seokjin, and Park Sungkwang, all obtained registration certificates between October and December of last year. Broadcaster and chef Lee Yeonbok, lecturer Kim Changok, and show host Dong Jihyun also completed their registrations. Many of these figures operated unregistered for several months, or even up to nearly ten years, and only began the registration process after public criticism and the possibility of crackdowns emerged.

(From left, clockwise) Nam Heesuk, Park Jungmin, Ji Seokjin, Song Kangho, Pyo Yejin, Yoo Ahin, Jung Sanghoon, Yoon Jongshin, Lee Dongguk, Song Yoona. Ninecoms, Sam Company, Esteem, Galaxy Corporation, Secret ENT, UAA, Jam Entertainment, JTBC, Saenggak Entertainment, The Asia Business Daily DB.

Actor Yoo Ahin (real name Eom Hong-sik), who received a suspended sentence for drug use, registered "U Company LLC" in Suseong-gu, Daegu, on December 22, just nine days before the end of the guidance period. The legal community views this as a typical case of legal risk management. If he were to be penalized with a fine or higher for unregistered illegal business operations during his probation period, the suspended sentence would be revoked and he would have to serve a prison term.

Cultural critic Kim Heonsik pointed out, "One-person agencies are essentially family-run businesses, making it difficult to implement internal checks and oversight," adding, "The fact that they only rush to register after facing legal risks suggests that the real purpose of joining the formal system is not transparency, but rather to avoid liability."

The Ministry of Culture, Sports and Tourism has announced plans for legal action, such as requesting investigations or administrative reviews, against unregistered businesses even after the guidance period. Minister Choi Hwi-young emphasized during last year's National Assembly audit, "We will quickly bring unregistered agencies under the management system and conduct a full-scale survey of the current situation." However, there are criticisms that the ministry lacks direct authority to impose penalties and does not have enough personnel for investigations, meaning detection largely relies on public complaints. The ministry's guidelines are also criticized for being merely administrative recommendations without legal force, making them ineffective.

Separately, the Korea Entertainment Management Association has announced plans for retroactive prosecution. This means that, regardless of current registration status, those who engaged in unregistered business activities within the statute of limitations will be held accountable. An official from the association stated, "Operating for years without registration is by no means a minor issue," and added, "Late registration does not legitimize illegal profits." The official continued, "For habitual and intentional unregistered businesses, we will pursue both prosecution and petitions for severe punishment to restore order in the market."

Proliferation of 'Cottage Industry' Agencies Amid Lax Regulations

There is also criticism regarding the lax registration requirements and ineffective regulations. The current "Act on the Development of the Popular Culture and Arts Industry" stipulates at least two years of industry experience as a requirement for agency registration, but the Ministry of Culture, Sports and Tourism allows registration after just about 40 hours of training. There is no separate evaluation process after completing the training, so passing is largely a formality. This system has opened the door for family members with no management experience to become corporate representatives, leading to a proliferation of "cottage industry" agencies. In fact, since the implementation of the system, there has not been a single case of fines imposed for failing to complete the required training.

Bae Seonghee, Deputy Legislative Researcher at the National Assembly Research Service, pointed out in a recent report, "The current registration system focuses only on whether an agency is registered, without assessing its capabilities or accountability," and added, "The formalization of the system has weakened its original intent to protect artists." Entertainment law specialists also expressed concerns, saying, "Replacing practical experience with training reduces industry expertise and may increase legal disputes such as settlement and contract conflicts."

Some authorities are tightening their oversight. The National Tax Service is closely monitoring the possibility that one-person agencies could be abused as tax evasion channels disguised as tax-saving measures. While the top personal income tax rate, including local taxes, can reach up to 49.5%, the maximum corporate tax rate is around 24%, making incorporation attractive for high-earning celebrities. However, there are concerns about various schemes, such as listing family members as fake employees to inflate labor costs or privately misusing corporate funds.

The National Tax Service plans to provide guidance on types of tax evasion schemes and respond strictly through tax audits. Commissioner Lim Gwanghyun of the National Tax Service has stated, "If tax evasion is detected, we will take thorough measures such as tax audits."

No Jong-eon, managing attorney at Jonjae Law Firm, advised, "Ignorance of the law does not exempt one from liability," and added, "If a management company already exists but a separate one-person agency is operated, the appropriateness of tax handling should be carefully reviewed."