On September 19, 2025, Yonhap reported that several celebrities, like actor Kang Dong-won, 2NE1's CL, and trot singer Song Ga-in, were questioned over recent allegations. The allegations were that they reportedly operated unregistered entertainment agencies. Yonhap News confirmed that the Yongsan Police Station was looking into complaints regarding Kang Dong-won and CL. Meanwhile, the Seocho Police Station had been assigned a similar case concerning Song Ga-in.
The cases stem from accusations filed by a private citizen who claimed the stars failed to comply with registration rules under the Popular Culture and Arts Industry Development Act. For those who don't know, the law requires management agencies handling entertainers to register with authorities.
Article 26 of the Act specifies that failure to register may result in penalties of up to two years' imprisonment or fines of up to 20 million KRW (approximately $14,500).
According to reports, Kang Dong-won's agency, AA Group, was only registered as a clothing distributor and not as a cultural content business. Kang Dong-won established his label in 2023 after leaving YG Entertainment.
Song Ga-in's label, GainDal Entertainment, was founded in 2024 alongside her brother, Jo Sung Jae. They admitted to the oversight and pledged to fix it.
Meanwhile, CL's one-person agency, Very Cherry, was revealed to have been operating without the necessary registration for nearly five years. The representatives are now rushing to complete the legal filings.
Background on Kang Dong-won, 2NE1's CL, and Song Ga-in, and wider implications
These developments with Kang Dong-won, CL, and more come as part of a wider wave of scrutiny in South Korea's entertainment sector. Earlier this year, artists such as Sung Si-kyung and Ock Joo-hyun were also found to have been running one-person agencies without registration for years.
South Korea Sets Year-End Deadline After Uproar over Ok Joo-hyun & Sung Si-kyung Agencies 👉 Read full story here : #okjoohyun #sungsikyung #agency #celeb #SBSStar #KEntertainmentNews Follow @SBS_star for more updates!
Both later issued apologies and began corrective filings. The Ministry of Culture, Sports and Tourism has announced that all agencies have until December 31, 2025, to comply with registration requirements. They also warned that non-compliant businesses after the grace period could face investigations and potential prosecution.
The National Tax Service has also been tasked with reviewing whether unregistered agencies may have incorrectly reported income and expenses. It raised concerns over possible tax evasion.
Actor Kang Dong-won was born in 1981 and rose to fame through films such as Temptation of Wolves (2004), Secret Reunion (2010), and Peninsula (2020). Most recently, he returned to television with Tempest, a Disney+ and Hulu drama that premiered in September 2025.

After leaving YG Entertainment in late 2022, he launched AA Group in 2023. It is now under scrutiny for not registering as an entertainment management company.
Lee Chae-rin is better known as CL. She debuted as the leader of the girl group 2NE1 in 2009. The group became one of the most influential acts in K-pop before disbanding in 2016. CL pursued a solo career and became the first Korean female soloist to enter the Billboard Hot 100 with Lifted in 2016.
She established her one-person label, Very Cherry, in 2020 to manage her career. However, the company reportedly overlooked the requirement to register as a popular culture business for nearly five years.

On the other hand, Song Ga-in is a prominent trot singer. She founded GainDal Entertainment in September 2024 with her brother. The label was meant to oversee her career and activities, but it was revealed that the business had not been properly registered. The agency acknowledged the lapse and stated that corrective action was underway.
The Act on the Development of the Public Culture and Arts Industry was designed to regulate agencies to ensure accountability in the entertainment sector. According to the law, both corporations and individual businesses managing more than one employee are required to register.
As investigations into Kang Dong-won, CL, and Song Ga-in continue. The matter is expected to set precedents for how the industry approaches compliance and legal responsibility in the future.
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Edited by Maithreyi S