What Legal and Institutional Improvements Are Needed to Advance K-Entertainment? [Law Firm News]

[Financial News] A forum was held to assess the serious damage suffered by the K-entertainment industry, which has gained prominence in global markets, as a result of online piracy and the spread of false information by cyber wreckers. Participants also sought effective legal and institutional improvements.
Hwawoo Law Firm announced on the 1st that it had co-hosted a policy seminar with the Korea Copyright Protection Agency (KCOPA) on the 29th of last month in Seminar Room 1 of the National Assembly Members' Office Building. The seminar was titled "Obstacles to and Ways to Advance Korea's Entertainment Industry: Seeking Institutional Improvements to Combat Online Copyright Infringement and Cyber Offenses."
The event was attended by Lee Jae-jung, chair of the National Assembly Culture, Sports and Tourism Committee; Lee Myung-soo, managing partner at Hwawoo; and Yoon Seong-cheon, president of KCOPA. Lawmakers from both the ruling and opposition parties also attended, including Choi Min-hee, Lim O-kyeong, and Jeong Jun-ho of the Democratic Party of Korea; Jo Eun-hee, the People Power Party's floor secretary on the committee; and Lee Jeong-moon, the Democratic Party of Korea's floor secretary.
Across two sessions, the seminar examined various ways to provide relief to victims of online copyright infringement and respond to defamation by cyber wreckers.
The first session was titled "The Proliferation of Online Copyright Infringement and Institutional Improvements for Victim Relief." Ahn Sang-pil, a deputy department head at Munhwa Broadcasting Corporation (MBC), presented on "Institutional Gaps in Responding to Online Copyright Infringement and Ways to Improve Them." Ahn pointed out that, although the copyright trade balance has remained in surplus for 13 consecutive years since 2013 and is a key national asset, no effective mechanism has been established to provide relief to infringement victims.
Seol Ji-hye, an attorney at Hwawoo who joined the discussion, emphasized that policy attention should shift away from focusing solely on direct perpetrators and toward holding online service providers (OSPs) accountable for supplying tools essential to illegal activities online. "Only by establishing precedents that recognize the liability of online service providers that have assisted illegal activities online can we minimize infringement and ensure the effectiveness of administrative sanctions," Seol said, calling for institutional support to establish such precedents.
The second session, titled "The Economic Effects of Defamation by Cyber Wreckers on the K-Entertainment Industry and Ways to Respond," featured Hyoung-Goo Kang, a professor in the Department of Business Administration at Hanyang University, who presented on "The Economic Impact of Cyber Wrecker Defamation on K-Entertainment." Drawing on empirical analysis of the effects of false information on revenue, reputation, and supply chains, Kang explained, "Reputation is the core asset supporting the annual revenue and future cash flows of the four largest K-entertainment companies—HYBE, SM Entertainment, JYP, and YG—and a reputation shock caused by cyber wreckers is transmitted simultaneously to operations and capital markets."
According to Professor Kang's analytical model, revenue losses caused by cyber wreckers amounted to approximately 637.2 billion won. If the false information spread overseas, the stock value of the four entertainment companies was also found to decline by 214.3 billion won.
Joonwon Jang, an expert adviser at Hwawoo, emphasized during the discussion, "The cyber wrecker issue goes beyond the question of criminal punishment; it is directly linked to protecting artists, the fundamental value of companies and the industry."
Hwawoo plans to compile the views of experts from various fields presented at the seminar and prepare specific legislative and policy recommendations to prevent online copyright infringement and eliminate cyber offenses. It will also continue expanding legal support to protect the rights and interests of K-content and entertainment companies.
[email protected] Yoo Seon-jun Reporter