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Entertainment agencies could soon be required to reveal financial records to artists

Published: 24 Mar. 2025, 11:56

Ministry of Culture, Sports and Tourism logo [MINISTRY OF CULTURE, SPORTS AND TOURISM]

Entertainment agencies may soon be required to provide their artists with written financial statements and underlying accounting records at least once a year, even without a formal request from the artist.

According to the Ministry of Culture, Sports and Tourism on Monday, a proposed revision to the enforcement decree on Popular Culture and Arts Industry Development Act is undergoing a public comment process until March 31.

Under the current law, agencies are obligated to disclose accounting records, including ledgers, only upon request from their artists. However, differing interpretations of what constitutes “disclosure” have led to disputes between agencies and entertainers. It has also been pointed out that artists often face difficulty requesting such information from their agencies.

Calls for reform grew following a 2022 controversy involving singer and actor Lee Seung-gi, who revealed that he had not received proper music royalties from his agency for 18 years.

Lee Seung-gi demands agency disclose payment records, or lack thereof

In response, the National Assembly passed a revision to the act in September last year — commonly referred to as the “Lee Seung-gi Act” — requiring agencies to disclose financial records even if artists do not explicitly request them. The revision is set to take effect on April 23.

The proposed enforcement decree outlines that agencies must provide entertainers with accounting records and compensation details related to their contractual work at least once a year, starting from the date of the contract.

The Culture Ministry expects the revision to help improve transparency and fairness in the entertainment industry, and is aiming for implementation by the end of next month.

The Korea Broadcast Performers' Association, as well as the Korea Broadcasting Actors Union, expressed support for the measure, citing the need for transparent financial settlements in the entertainment industry.

Meanwhile, the Korea Management Federation and the Korea Music Content Association voiced opposition, arguing that settlement records often contain sensitive corporate information and that exceptions should be allowed in cases where disclosure is not feasible.

Translated using generative AI and edited by Korea JoongAng Daily staff.

BY JEONG JAE-HONG [[email protected]]