According to Sports Kyunghyang, many artists such as Kang Dong Won, Song Ga In, CL (2NE1), Kim Wan Sun, Sung Si Kyung are being investigated by the police for being accused of running unregistered entertainment companies.
The Law on Developing the Korean Mass Culture and Arts Industry was promulgated in 2014, requiring companies to register with the Ministry of Culture, Sports and Tourism through local governments.
More and more K-pop actors and stars have established their own management companies to manage their solo activities. Among them are Jennie, Jisoo and Lisa from Blackpink; Donghae and Eunhyuk from Super Junior; JooE from Momoland; Rocky from Astro.
Most of these artists have registered management companies with the Ministry of Culture in accordance with the provisions of law.
However, some companies continue to operate without registration, due to lack of knowledge or due to being established before the law took effect in July 2014. Violators could face up to two years in prison or a fine of up to 20 million won.
It is reported that actor Kang Dong Won parted ways with YG Entertainment in December 2022, then established a member entertainment company called AA Group in 2023.
However, AA Group is only registered as a clothing distributor, not a public cultural and artistic company.
Kang Dong Won is currently attracting attention with his leading role in the 70 billion won investment drama Tempest by Disney+. This work is currently the most watched film of Disney+ globally in 2025 (according to the number of views in the first 5 days).
In response to the controversy surrounding celebrities running unregistered companies, the Korean Ministry of Culture, Sports and Tourism has extended the business registration period for all mass cultural and artistic companies until December 31 this year.
Meanwhile, the General Department of Taxation will consider potential tax evasion acts of unregistered companies that may have submitted inaccurate income and cost reports.
