Singer Sung Si-kyung, who was accused of operating an unregistered popular culture and arts planning business. Photo by Lee Sun-Myung 57km@kyunghyang.com

The older sister of singer Sung Si-kyung and his agency were referred to prosecutors on suspicion of operating an unregistered popular culture and arts planning business.

It was confirmed on the 10th that the Yeongdeungpo Police Station in Seoul recently referred the older sister of the singer, Ms. Sung, and the agency SK Jaewon to the Seoul Southern District Prosecutors Office on suspicion of violating the Act on the Development of the Popular Culture and Arts Industry.

Sung Si-kyung, who was also reported, received a decision not to refer the case. Regarding this, the police determined, “There is no objective evidentiary material confirming that Sung Si-kyung directly intervened in (agency) operations.”

As reported by this newspaper, SK Jaewon, a one-person agency for Sung Si-kyung, has operated without registering as a popular culture and arts planning business from its establishment in February 2011 until recently.

After his exclusive contract with Jellyfish Entertainment expired, he moved to SK Jaewon, where his older sister serves as representative, and he continues activities there to this day.

Under the Act on the Development of the Popular Culture and Arts Industry, entertainers and talent agencies operating as corporations or as individual business operators employing more than one person must register as a popular culture and arts planning business.

Regarding this, a representative of SK Jaewon, Sung Si-kyung’s agency, said, “The corporation was established in February 2011, when the relevant statute did not exist,” and “After a statute related to registration came into effect, we did not receive any official document. We are now aware of this and have inquired about registering as a popular culture and arts planning business.”

Attorney Jung Tae-won of law firm LKB Pyeongsan said, “This case again shows that even a so-called one-person agency with only one artist cannot be exempt from the registration obligation,” and “It does not appear easy to avoid responsibility solely on the grounds that there was no related law when the company was established or that no separate guidance was received.”

He continued, “If business continued after the law took effect, checking the relevant system and following registration procedures is a matter the company must handle on its own,” adding, “However, if during the investigation the company completed registration belatedly and intent is deemed not significant, there is a high likelihood that the case will be resolved with a fine.”

Attorney Jung added, “The non-referral decision regarding Sung Si-kyung himself also appears to be the result of a determination that there is insufficient evidence that he directly participated in company operations or major decision-making,” and “This case is likely to serve as a reminder across the entertainment industry that, even for one-person agencies, basic legal procedures must be reviewed.”