Calls grow to reform family-run one-person agencies

Jan 27, 2026, 11:17 am

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Actor Cha Eun-woo has recently come under scrutiny over management practices at his one-person agency. / Fantagio

Controversies involving celebrities such as Cha Eun-woo and Park Na-rae have once again brought the structural vulnerabilities of one-person entertainment agencies—often operated by family members—under scrutiny.

Cha recently became embroiled in a tax controversy linked to a revenue management structure that relied on a corporation registered under his mother’s name. Earlier, Park Na-rae’s dispute with a former manager also highlighted shortcomings in oversight stemming from one-person agencies and operations centered on close associates. Other celebrities, including Hwang Jung-eum, have likewise faced controversy related to one-person agency structures.

While these cases arose in different areas—taxation, internal management, and institutional compliance—they share a common root: structural weaknesses caused by the absence of professional management systems.

The entertainment industry has long grown around the influence of individual stars. As personal fame directly translated into revenue, business and operational responsibilities tended to concentrate in the hands of a small inner circle. Entrusting accounting, contracts and scheduling to close acquaintances or family members may appear efficient in the early stages, but critics warn that such arrangements make it difficult to identify and manage risks.

In organizations where human resources, accounting and auditing functions are not clearly separated, authority can become overly centralized, blurring lines of responsibility when problems arise. In the event of disputes, the lack of objective decision-making standards further exposes the limitations of these structures.

Family-run, personality-driven models allow for swift decision-making in the early phase, but as external oversight weakens, risks inevitably accumulate. Relying solely on personal trust, experts say, is no longer sufficient in a growing market that demands greater accountability and social responsibility.

A frequently cited contrast is Psy’s agency P Nation, which began as a one-person operation but evolved into a mid-sized agency by separating legal, tax, accounting and human resources functions. By reducing reliance on a single individual and strengthening institutional systems, the company established a foundation for more stable management.

An industry official said the cases involving Cha Eun-woo and Park Na-rae illustrate how much of the entertainment sector still depends on personal and family-centered management. “A star’s success may begin with individual talent, but sustaining that success requires an organization and systems,” the official said. “The industry has reached a point where it must move beyond structures based on private trust and adopt management frameworks grounded in professionalism and accountability.”

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