Minors account for half of complaints against 'academy-style' entertainment agencies

The number of complaints accusing entertainment agencies of luring aspiring TV stars and models into expensive contracts with misleading promises is rising — and a majority involve minors.

A total of 366 dispute resolution requests involving “academy-type” entertainment agencies were filed between 2023 and June this year, the Korea Consumer Agency (KCA) said on Thursday.

Academy-type agencies train their clients, provide auditions or even guarantee certain opportunities — for a cost. Most conventional agencies do not require a training fee, as they consider the process an investment.

Complaints more than doubled from 41 in 2023 to 86 in 2024, an increase of 109.8 percent. The figure then rose another 72.1 percent to 148 last year.

The KCA recorded 91 cases in the first half of this year, up 75 percent from 52 during the same period last year.

Children and teenagers accounted for the largest share of complainants with 184 of the total 366 cases, or 50.3 percent.

People aged 40 to 64 followed with 86 cases, or 23.5 percent. Those in their 20s and 30s accounted for 83 cases, or 22.6 percent.

Nearly all complaints — 361, or 98.6 percent — concerned contract cancellations.

In 179 such cases, or 49.6 percent, agencies refused to issue refunds, making this the most common complaint. Refund delays accounted for 90 cases, or 24.9 percent, and excessive cancellation fees for 82 cases, or 22.7 percent. In seven cases, or 1.9 percent, the agencies became completely unreachable.

Of the 328 cases with an identified reason for contract cancellation, 245, or 74.7 percent, involved customers who had simply changed their minds. Agencies’ failure to fulfill contractual obligations accounted for 79 of the 328 cases, or 24.1 percent.

Among the 79 cases involving breaches of contract, 46, or 58.2 percent, the agencies involved either failed to provide the promised training or audition and casting opportunities or delivered services that fell short of what had been agreed upon. Another 24 cases, or 30.4 percent, involved misleading advertisements, with agencies claiming that they can guarantee their clients roles in specific dramas or modeling opportunities for specific brands.

In one case, the complainant saw an agency’s advertisement for older models and visited the establishment, where they took a camera test and seemingly passed. They signed a two-year entertainment contract worth 3.72 million won ($2,800) with the agency, only to discover that the business was a general training academy rather than an entertainment agency.

When they moved to terminate the contract and request a refund, the company offered to return their payment after deducting a registration fee, two months’ worth of training fees and the cost of professional portfolio photographs. However, it ultimately ceased contact with the person.

Of the 366 total complaints, 172 resulted in settlements, including refunds, and another 193 did not. Negotiations were ongoing in one case.

The KCA urged potential clients not to rush into contracts simply because they had been told that they had passed an audition.

Legitimate entertainment agencies generally do not charge aspiring performers for training, the agency explained, and warned consumers to carefully review contracts if companies demand large upfront payments for services such as audition and portfolio preparation or management.

The KCA also advised consumers to ensure that verbal agreements are explicitly included in written contracts. Consumers should also carefully check contract durations and refund policies for early termination before signing, it said.

BY JEONG JAE-HONG [[email protected]]