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Photo: Fantagio |
[Alpha Biz= Kim Jisun] A bill aimed at strengthening oversight of one-person entertainment agencies has been introduced in South Korea amid growing controversy over alleged tax evasion involving high-profile entertainers.
According to political sources on March 3, Rep. Jeong Yeon-wook, a member of the National Assembly’s Culture, Sports and Tourism Committee, proposed amendments to the Popular Culture and Arts Industry Development Act on Aug. 1.
The proposal—informally referred to as the “Cha Eun-woo Prevention Act”—comes after media reports raised tax-related allegations involving Cha Eun-woo, reportedly linked to sums exceeding KRW 20 billion, and actress Honey Lee, who faced allegations involving roughly KRW 6 billion.
The amendment seeks to place primary oversight of entertainment agencies under the Ministry of Culture, Sports and Tourism (MCST), rather than local governments, and to restrict individuals who have received criminal penalties of a fine or higher for tax offenses from operating or working for such agencies.
Under the proposed changes, agency operators would be required to report registration and business status annually to the culture minister, who would centrally manage and monitor the data. Disqualification criteria for running agencies would also be strengthened.
According to data submitted by the MCST to Rep. Jeong’s office, 6,140 popular culture and arts management agencies were registered as of the end of last year, with 907 newly registered in 2024—up sharply from 524 in 2021. The increase has been attributed to growing global demand for K-content and a surge in one-person and small-scale agencies.
Currently, the registration, modification, and closure of such agencies fall under the jurisdiction of local governments.
If passed, the bill would bar individuals convicted of violations of the Tax Punishment Act from serving not only as agency representatives but also from being employed by management companies.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
