A bill to monitor all agencies follows the tax scandals rocking South Korean celebrities.
Cha Eun Woo allegedly has tax issues of 20 billion wons, approximately 14.7 million euros, while Honey Lee is said to be involved for 6 billion wons, around 4.4 million euros. These revelations raise questions about the role of agencies and their responsibility to authorities, as the sector continues to grow rapidly.
A bill for more transparency
On March 1, Deputy Jeong Yeon Wook, a member of the Culture, Sports and Tourism Committee, proposed an amendment to better regulate the cultural and artistic industry. He stated: “This Cha Eun Woo bill represents a minimum measure to strengthen transparency and responsibility in the industry and restore fair order.”
The aim is to more effectively control agencies while ensuring greater tax fairness for all professionals in the sector.
The Ministry of Culture, Sports, and Tourism indicates that 6,140 artistic planning agencies were registered by the end of 2025. In 2021, only 524 new agencies were created, compared to 907 the following year. According to the deputy’s office, the boom in Korean content has led to the rapid emergence of single-person agencies or small structures, often without real management activity. These “on paper” agencies create loopholes that expose the system to abuse.
Stronger oversight and stricter rules
Today, the registration and closure of agencies depend on local governments, limiting national-level oversight. The Ministry of Culture has no legal basis to monitor all agencies in the country.
With the new amendment, officials will have to declare their status and activities to the minister each year, and information from local governments will also need to be transmitted. This measure eliminates the “hands-off” structure that allowed significant loopholes in supervision.
The project also strengthens rules regarding agency executives. People convicted of sexual crimes or child abuse cannot lead an agency, but those convicted of tax fraud were not included. The amendment will now prohibit individuals convicted of taxes or heavy fines from leading or working in these agencies, addressing a major loophole.
Deputy Jeong explained: “The proliferation of single-person agencies is normal, but many are created only to reduce taxes, without actually managing. There are many agencies that are just paper companies.” He added: “Every time the National Tax Service publishes the list of major offenders or announces the results of its checks, celebrities’ names always appear. This clearly shows the flaws in the current system.”
He emphasized: “As Korean content dominates the global market, the agency management system is outdated. We can no longer tolerate loopholes that allow tax evaders to continue leading agencies.” He concluded: “The Ministry of Culture, Sports, and Tourism should not hide behind the argument of local governments but should directly take over the supervision of agencies.”
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