The Ministry of Culture, Sports and Tourism has failed to penalize a single unregistered entertainment agency over the past 11 years, despite a 2014 law requiring all talent management companies to obtain official licenses. This shocking revelation came to light amid recent cases involving singer Sung Si-kyung and musical actress Ock Joo-hyun, which exposed the widespread practice of operating unregistered one-person agencies throughout the entertainment industry.
A ministry official told The Korea Herald on Thursday that while they receive three to four requests annually to verify whether companies are properly registered, no enforcement action has been taken since the law took effect in 2014. "As far as I know, since the law took effect in 2014, there has not been a single case where an unregistered agency was punished," the official acknowledged, essentially admitting that authorities have shown no willingness to enforce regulations they themselves created.
The official explained that most complaints come from individuals who have received casting offers and want to confirm whether the companies are legitimately registered. However, even when unregistered agencies are discovered, authorities rarely take action unless they violate other legal provisions or cause direct harm to the public. This hands-off approach has created a regulatory blind spot that has allowed countless agencies to operate illegally for years.
According to ministry data, over 5,000 entertainment companies are officially registered nationwide, but many others continue to operate without proper documentation. The ministry claims that conducting a comprehensive investigation to identify all unregistered agencies is virtually impossible. "There's no way to conduct a full-scale inspection of unregistered companies," the official said. "We can examine those already on the books, but it's extremely difficult to track down every unregistered operator."
The Act on the Development of the Public Culture and Arts Industry, which was enacted in January 2014 and took effect in July of the same year, was designed to protect performers from exploitative contracts and bring transparency to profit-sharing in the entertainment sector. Operating without registration violates Article 26 of the law, which carries penalties of up to two years in prison or a fine of 20 million won ($14,416).
The ministry's lax oversight has significantly contributed to the problem. Officials claim that most unregistered agencies were established before the 2014 law and were largely unaware of the new legal requirements. Over the past 11 years, the ministry says it has periodically encouraged compliance through notices and outreach efforts involving the Korea Entertainment Producers Association and the Korea Entertainment Management Association. However, these efforts have largely failed to produce meaningful results.
What makes the situation even more troubling is that several high-profile recent cases involve agencies established well after the 2014 law took effect. Ock Joo-hyun's TOI Entertainment, founded in 2022, failed to register, with her representatives blaming incomplete paperwork and lack of knowledge about administrative procedures. Song Ga-in's Gaindal Entertainment, launched in 2024, and actor Kang Dong-won's AA Group, established in 2023, were also found to be operating without proper registration.
The issue only gained broader public attention after Sung Si-kyung's agency was reported to police through the government's online complaint portal, prompting the ministry to finally announce new registration guidance measures on Thursday. This reactive approach highlights how the ministry has essentially abandoned its regulatory responsibilities for over a decade.
The problem is likely to expand as more K-pop stars establish their own independent agencies. Recent examples include Blackpink members Jennie, Jisoo, and Lisa, who have set up individual companies; Super Junior's Donghae and Eunhyuk; Momoland's JooE; and Astro's Rocky. This trend toward artist independence could significantly widen the regulatory blind spot if proper oversight measures aren't implemented.
In response to the mounting criticism, the ministry announced it will run a comprehensive registration guidance period until December 31, giving unregistered agencies time to comply voluntarily. Officials stated that companies registering during this grace period will not be exempt from criminal penalties if they are later found to have violated other provisions of the law or caused harm to the public. However, given the ministry's track record of non-enforcement over the past 11 years, serious questions remain about whether this latest initiative will actually produce meaningful results or simply serve as another empty gesture.
