Independent Production Companies Face Business Blockade If Wages and Contract Payments Are Unpaid

Enforcement Decree of the Framework Act on Cultural Industry Promotion Amended to Take Effect on the 9th
Notification Required for Changes in Name, Representative, or Location
Up to 5 Million KRW Fine and Business Suspension for Contract Deposit Nonpayment

Ministry of Culture, Sports and Tourism. Photo by Hyunmin Kim kimhyun81@

From now on, broadcasting operators must report to the Minister of Culture, Sports and Tourism to operate as independent broadcasting production companies. If wages or contract payments are delayed, their business operations may be suspended or closed.

The Ministry of Culture, Sports and Tourism announced on the 1st that the amendment to the "Enforcement Decree of the Framework Act on Cultural Industry Promotion" containing these provisions has been approved and will take effect on the 9th. The core points are the mandatory reporting, change reporting, and business succession reporting obligations for independent production companies, as well as the prohibition of wage and contract payment delays. It also stipulates the necessary details and penalty standards for each.

According to this, independent production companies must follow the reporting procedures if there are changes in their name, representative, or location. The same applies when succeeding the status of a previous independent production company through transfer, inheritance, or merger. Operating without reporting will result in fines ranging from 500,000 to 3,500,000 KRW. If documents are falsified or submission is delayed, fines of 2,500,000 to 4,000,000 KRW will be imposed.

Delays in contract payments will be subject to fines between 3,000,000 and 5,000,000 KRW. Furthermore, if wage or contract payment delays are not resolved within six months or if the delayed amount exceeds 30,000,000 KRW, the business will be prohibited from operating for one year and six months.

The Ministry of Culture, Sports and Tourism operates a reporting management system for independent broadcasting production companies to ensure efficient reporting management. An official stated, "According to the 2019 Broadcasting Production Labor Environment Survey, 13.2% of broadcasting production personnel experienced unpaid wages," adding, "With this system improvement, protective measures for production personnel have been established, and we expect the related labor environment to improve significantly."

This content was produced with the assistance of AI translation services.