Seoul, South Korea – CL, the prominent South Korean singer and former leader of the K-pop group 2NE1, is facing legal scrutiny after being referred to prosecutors for allegedly operating an unregistered entertainment agency. The Seoul Yongsan Police Station announced on January 22, 2026, that CL, whose real name is Lee Chae-rin, would be indicted without detention for violating the Popular Culture and Arts Industry Development Act.
The allegations stem from CL's operation of her one-person agency, Very Cherry, which she established in 2020 to manage her solo career after her contract with YG Entertainment expired. Authorities claim that Very Cherry has been operating without proper registration with the Ministry of Culture, Sports and Tourism for over five years. This failure to register constitutes a violation of South Korean law, which mandates that entertainment agencies register with the government to ensure proper oversight of contracts and protection of artists' rights.
Under the Popular Culture and Arts Industry Development Act, operating an unregistered entertainment business can result in severe penalties, including imprisonment for up to two years or fines reaching 20 million won (approximately $13,600 or S$17,400).
The case gained attention in September 2025 when a South Korean media outlet, TenAsia, reported the potential registration issues surrounding Very Cherry. At the time, Very Cherry acknowledged the administrative oversight and stated that it had initiated the necessary procedures to rectify the situation.
Interestingly, actor Kang Dong-won was also under investigation for similar allegations. However, police cleared him, determining he was not involved in managing his agency. Instead, his agency's CEO and the agency itself have been referred to prosecutors.
CL's referral to prosecutors is part of a broader crackdown on unregistered entertainment agencies in South Korea. Scrutiny of these agencies intensified after allegations surfaced in September 2025 against an independent label representing singer Sung Si-kyung, which had allegedly operated without registration for over a decade. Subsequently, the Ministry of Culture, Sports and Tourism conducted a nationwide compliance campaign to encourage agencies to complete their registration. Several agencies, including those of singers Sung Si-kyung, Ock Joo-hyun, and Song Ga-in, as well as actors Sul Kyung-gu and Lee Hanee, have since completed the formal registration process.
The outcome of CL's case remains to be seen. If found guilty, she could face significant fines or even imprisonment. The case highlights the importance of regulatory compliance in the South Korean entertainment industry and the government's commitment to protecting artists' rights.
