According to confirmation on January 22, the Yongsan Police Station in Seoul recently forwarded CL, her agency, Kang Dong-won’s agency representative identified as Mr. A, and the related corporate entities to the Seoul Western District Prosecutors’ Office. The case centers on allegations of operating entertainment agencies without mandatory registration.
CL is accused of establishing a one-person agency in February 2020 and operating it for approximately five years and seven months without registering as a popular culture and arts planning business with the relevant district office. As she directly managed and represented the company herself, CL was listed as a suspect and referred to prosecutors.
In a similar case, the representative of Kang Dong-won’s agency was found to have operated a corporation for about two years and nine months after its establishment in January 2023 without completing the required registration. However, Kang Dong-won himself was cleared of charges, as authorities determined he had no involvement in agency management or operations and focused solely on his acting career.
The investigation began after a whistleblower filed a complaint, emphasizing that the Popular Culture and Arts Industry Development Act exists to protect vulnerable individuals such as minors and trainees, improve unfair industry practices, and maintain fair market order. The complainant argued that long-term unregistered operations undermine artist protection, business trust, and overall industry integrity.
Recent cases involving celebrities running one-person agencies without legal registration have drawn growing public attention. Under current law, operating an entertainment agency without proper registration can result in up to two years in prison or a fine of up to 20 million won (approximately 13.6 thousand USD).
In response, the Korea Entertainment Management Association stated that it is unacceptable for high-profile celebrities, who should be leading by example in legal compliance, to operate unregistered agencies for years. The organization indicated it is considering strong measures, including filing formal complaints, to address the issue.
Sources: 네이트 뉴스