Singer Sung Si-kyung’s one-person agency has been referred to prosecutors on allegations it operated a management business without the required registration. Sung himself will not face charges.
On the 10th, Yeongdeungpo Police said the singer’s older sister―identified as Ms. Sung, the CEO of his label SK Jaewon―was sent to prosecutors without detention for alleged violations of the Popular Culture and Arts Industry Development Act. The corporate entity SK Jaewon was also referred on the same charge.
SK Jaewon is a one-artist outfit with Sung as its sole client, led by Ms. Sung as chief executive. Police said the company conducted management work without registering as a “pop culture and arts agency” with the Ministry of Culture, Sports and Tourism.
Under Article 26 of the Popular Culture and Arts Industry Development Act, management companies above a certain size must register with the culture ministry. Violations are punishable by up to two years in prison or fines of up to 20 million won.
As for Sung, police concluded he was not directly involved in operating the company and declined to refer him. “The de facto operator was CEO Ms. Sung, while Sung Si-kyung functioned essentially as an artist,” authorities said.
Following the complaint, SK Jaewon said in a statement that while the company was established in 2011, it “failed to recognize” a 2014 legal change that created the registration requirement, adding, “We deeply apologize.” The agency said it is now completing the registration process. Sung also acknowledged the violation at the time, calling the lapse “clearly the company’s fault” and stressing it was unrelated to income concealment or tax evasion.
Separately, musical theater star and singer Ock Joo-hyun was recently referred to prosecutors on the same allegation.
(SBS Entertainment News | Kang Kyung-youn)