Tax Evaders May Be Barred from Starting Entertainment Agencies... Popular Culture Industry Act Proposed

Blocking Tax Evaders from Operating and Working at Agencies
Overcoming Local Government Limitations with Integrated Ministry Oversight
Jung Yeonuk: "Closing Institutional Loopholes and Establishing Fair Order"

A new system is being proposed to prevent individuals with a history of tax evasion from entering the entertainment agency business, with the Ministry of Culture, Sports and Tourism set to oversee and manage the entire industry's status in an integrated manner.

Assemblyman Jung Yeonuk of the National Assembly's Culture, Sports and Tourism Committee sponsored a partial amendment to the Act on the Development of Popular Culture and Arts Industry on March 1, which includes these measures.

According to the Ministry of Culture, Sports and Tourism, as of the end of last year, 6,140 popular culture and arts planning agencies were registered. The number of new registrations surged from 524 in 2021 to 907 last year.

The registration and closure of entertainment agencies are handled by local governments. However, there is currently no legal basis for the Ministry of Culture, Sports and Tourism, which is the main supervisory body, to manage the overall status in an integrated manner.

The proposed amendment requires planning agencies to report their registration and business status to the Minister of Culture, Sports and Tourism each year, and also mandates local governments to notify the ministry of their administrative processes.

The bill also includes provisions to expel those with a record of tax evasion from the industry. Under current law, only those convicted of sexual offenses or child abuse are restricted from working in planning agencies. The amendment adds violations of the Punishment of Tax Offenses Act resulting in at least a fine as grounds for disqualification, thereby completely blocking such individuals from operating or being employed by agencies. The intent is to curb the practice of tax evasion in the entertainment industry, such as abusing single-person agencies for tax avoidance.

Assemblyman Jung emphasized, "While K-content is leading the global market, the management system for agencies remains outdated. We aim to close institutional loopholes that allow individuals with a history of tax evasion to operate in this sector, and to establish transparency and fair order in the industry."

This content was produced with the assistance of AI translation services.