On October 18, Sung Si-kyung took to Instagram to address the issue, stating, "After debuting, I went through various companies and experienced many things before establishing my own agency in 2011."
He explained, "The intention was to reduce size and costs and operate within my capabilities. However, with the implementation of the Popular Culture and Arts Industry Development Act in 2014, a registration system for cultural and arts planning businesses was introduced, which I failed to recognize in time."
Sung emphasized the importance of the registration system, noting, "This system is a crucial legal mechanism for protecting the rights of cultural artists and ensuring the healthy operation of the industry." He admitted, "Failing to recognize and complete the necessary education and registration was the company's fault, and we are deeply reflecting on this."
He clarified, "The lack of registration was not related to income omission or tax evasion. Our income has been transparently reported through a tax accountant."
Sung Si-kyung also expressed, "This incident has become an opportunity for me to reflect more strictly on myself. I will ensure to manage my activities responsibly and meticulously."
Previously, it was reported on October 16 that Sung's agency, SK Jaewon, had been operating without registration since its establishment in February 2011. The agency is led by Sung's sister, Seong Mo, and has been managing his activities since his contract with Jellyfish Entertainment ended in 2018.
According to the current Popular Culture and Arts Industry Development Act, entertainers operating as corporations or individual businesses with more than one person must register as a cultural and arts planning business. Failure to do so can result in up to two years of imprisonment or a fine of up to 20 million won.
In response, Sung's agency stated, "We were unaware of this registration obligation and, as a result, did not proceed with the registration process. We sincerely apologize for our lack of awareness and preparation regarding the relevant laws."
Following similar revelations about other artists, including CL from 2NE1, actor Kang Dong-won, and singer Song Ga-in, the Ministry of Culture, Sports, and Tourism announced on October 18 that it would operate a "Cultural and Arts Planning Business Registration Guidance Period" until December 31.
Sung Si-kyung's full statement on social media:
"This is Sung Si-kyung.
I sincerely apologize for causing concern to many people due to matters related to me.
After debuting, I went through various companies and experienced many things before establishing my own agency in 2011.
The intention was to reduce size and costs and operate within my capabilities.
With the implementation of the Popular Culture and Arts Industry Development Act in 2014, a registration system for cultural and arts planning businesses was introduced, which I failed to recognize and implement in time.
This system is a crucial legal mechanism for protecting the rights of cultural artists and ensuring the healthy operation of the industry.
For example, it includes basic education for representatives, prevention of unfair contracts, protection of the rights of affiliated artists or minors, prohibition of sexual solicitation, and management technique education.
Failing to recognize and complete the necessary education and registration was the company's fault, and we are deeply reflecting on this. We are quickly proceeding with the registration process and correcting the mistakes.
I want to clarify that the lack of registration was not related to income omission or tax evasion. Our income has been transparently reported through a tax accountant.
This incident has become an opportunity for me to reflect more strictly on myself. I will ensure to manage my activities responsibly and meticulously. I apologize once again for causing concern."
Reporter: Da-yeon Jeong, Ten Asia light@tenasia.co.kr