Earlier this year, Cha Eunwoo, a member of ASTRO, had his name linked to a huge controversy, receiving accusations of tax evasion. The case made headlines when the South Korean National Tax Service reportedly began auditing several high-profile celebrities. In the case of the idol, reports pointed to possible irregularities related to alleged omissions of income or improper deductions in advertising contracts and international activities, with amounts reaching KRW 20 billion (about US$13.8 million). Now, after the worldwide repercussions of the situation involving the artist, the Korean National Assembly is proposing a law named after the artist, as an amendment to the Popular Culture and Arts Industry Development Act.
According to information reported by Koreaboo, last Monday, the 1st, People Power Party member Jeong Yeon Wook announced that he intended to propose an amendment called the “Cha Eunwoo Prevention Act” to require entertainment agencies to report annually to the Minister of Culture, Sports, and Tourism on their registration and business status. The proposal presented to the National Assembly aims to update advertising and intellectual property rights laws. According to information released by the Koreaboo portal, the intention is to prevent companies from using the names or images of celebrities in promotional materials in a misleading or unauthorized manner.
According to legislative representatives involved in the proposal, the use of high-profile celebrities to promote products without paying royalties or licensing agreements harms not only the artist but also the advertising market as a whole. The law seeks to establish strict penalties for brands that attempt to take advantage of the popularity of K-pop idols and K-drama actors to boost sales illegally. In a statement, politician Jeong Yeon Wook said:
“Although Korean content is leading the global market, the management system for agencies remains outdated. We can no longer tolerate institutional loopholes that allow individuals with a history of tax evasion to openly engage in financial planning businesses. Stop hiding behind the excuse of leaving it to local governments; take direct responsibility for management and supervision. This bill is a minimal tool to increase transparency and accountability in the industry in order to establish a fair order.”
If approved, the Cha Eunwoo Prevention Act will serve as an important precedent for other artists who suffer from the unauthorized use of their identities on shopping sites, delivery apps, and social networks. The South Korean government is demonstrating that it is attentive to the evolution of digital marketing and the need to protect personality rights in the virtual environment. The bill will now undergo voting and possible amendments before being signed into law. However, the debate surrounding Cha Eunwoo’s name has already shed light on a problem that many artists have been quietly facing. The expectation is that, with the new legislation, the South Korean market will become more transparent and fair for both talents and the agencies that represent them.
