MCST Refers 16 Entertainment Agencies for Investigation over Alleged Unregistered Operations

[Financial News] The Ministry of Culture, Sports and Tourism (MCST) has asked the police stations with jurisdiction to investigate 16 entertainment agencies suspected of operating without registering as popular culture and arts planning businesses.
According to the MCST on the 12th, the action follows a review, conducted with local governments responsible for registration, of planning businesses’ registration status and operating conditions. The MCST conducted on-site inspections of 50 businesses suspected of operating without registration or of inadequate management. After reviewing the findings, it selected businesses whose registration could not be confirmed for referral for investigation. It also notified the relevant local governments about those businesses.
The MCST has identified suspected cases of unregistered operations through reports submitted via e-People and its own monitoring. From September 18 to December 31 last year, it ran a nationwide registration guidance period. According to MCST figures, the number of new registrations during that period rose by about 50% compared with the previous year.
Under the Popular Culture and Arts Industry Development Act, anyone seeking to operate a popular culture and arts planning business must register. Those operating without registration may face up to two years in prison or a fine of up to 20 million won.
To protect popular culture artists and related workers, the MCST plans to strengthen oversight of unregistered operations and provide year-round guidance on the registration system. From the 20th, under the amended law, the MCST will be required to inspect at least once a year whether planning businesses comply with registration requirements. A legal basis has also been established for revoking the registration of businesses that cease to meet the requirements after registering.
An MCST policy official said, “We plan to conduct regular inspections to ensure that registration as a planning business does not remain a one-time procedure and that registered businesses continue to comply with legal requirements.”
[email protected] Jang In-seo Reporter