South Korea's National Assembly Tackles Plagiarism and Merchandise Exploitation in Entertainment Industry

In the first National Assembly audit of the 22nd National Assembly, discussions are underway on the pressing issues of 'choreography plagiarism disputes' and 'idol merchandise exploitation' by major entertainment agencies in South Korea. This move comes in the wake of a press conference by former ADOR CEO Min Hee-jin, which has drawn significant public attention to these issues.

On the 7th, the National Assembly's Culture, Sports, and Tourism Committee addressed the choreography plagiarism dispute between the groups NewJeans and I-LIT. Shin Dong-wook, a member of the People Power Party, compared the choreography of NewJeans and I-LIT, stating, "If you look closely, the choreography is very similar. Many are raising issues about choreography copyrights; is there anything under review?"

In response, Jeong Hyang-mi, Director of the Copyright Bureau at the Ministry of Culture, Sports, and Tourism, stated that they are gathering opinions from stakeholders and are currently conducting research. She further announced plans to release guidelines on choreography copyrights by November, with comprehensive guidelines expected by the end of the year. Jeong also explained that they plan to provide comprehensive consulting to choreography creators and distribute related materials.

She added, "Rather than regulating by law, we are considering managing through guidelines," and noted that they are also reviewing standard contracts and choreography copyrights in the content sector. Additionally, Minister of Culture, Sports, and Tourism Yoo In-chon stated, "We have been interested in protecting choreography since the beginning of the year and are preparing to do so. Since there are many similar choreographies, detailed clauses such as rates are necessary. We have been paying attention to choreography issues for a long time, so we will organize and announce them well."

On the same day, Kang Yoo-jung, a member of the Democratic Party of Korea and part of the Culture, Sports, and Tourism Committee, raised issues regarding the 'idol merchandise exploitation' by major entertainment agencies. The deceptive practices of large entertainment agencies, such as refusing returns upon opening merchandise packaging and requiring unboxing videos for exchanges and refunds, have long been criticized for restricting consumer withdrawal rights. Although legal sanctions have been imposed, they are considered ineffective in the industry.

According to data released by Kang, HYBE recorded sales of 1.2 trillion won from idol merchandise alone from 2021 to the first half of 2024. In contrast, fines for violations amounted to only 3 million won. The Fair Trade Commission (FTC) imposed fines and issued corrective orders to subsidiaries of major agencies like HYBE, SM Entertainment, YG Entertainment, and JYP Entertainment in August.

Notably, HYBE's subsidiary Weverse Company voluntarily corrected violations, resulting in a reduced fine of just 3 million won. Kang criticized this, stating, "This is only 0.000025% of the astronomical revenue HYBE earned from merchandise sales."

Despite the government's corrective orders, the number of consumer consultations related to entertainment agencies at the Korea Consumer Agency increased fourfold from 69 cases in 2019 to 283 cases in 2023. Kang explained that the reason for the lack of improvement despite repeated criticisms is "because government sanctions are merely a slap on the wrist compared to the astronomical merchandise revenue."

She expressed her intention to thoroughly scrutinize the sanctions during the National Assembly audit. Meanwhile, the first National Assembly audit of the 22nd National Assembly commenced on this day.

이민경 텐아시아 기자 2min_ror@tenasia.co.kr