A "sponsor" is typically a wealthy individual—an investor, a CEO, or a high-ranking executive—who provides financial backing to an agency or a specific celebrity in exchange for sexual favors. For decades, this was an open secret. Young trainees, often in their mid-teens, are signed to contracts that leave them deeply in debt to their agencies for training costs, housing, and styling.
The public outcry from these scandals forced South Korea to confront its deeply ingrained patriarchal structures. The government launched a special investigation unit, resulting in arrests and, notably, the retirement of Seungri and the incarceration of Jung Joon-young.
Exclusive contracts between agencies and artists are now strictly limited to a maximum length of seven years. south korean entertainment model prostitution s fixed
Large agencies hold total control over a trainee’s housing, debt, and public image, making it nearly impossible for a victim to speak out without destroying their career. High-Profile Cases and the Public Outcry
Estimates suggest that tens of thousands of women are involved in prostitution within South Korea's entertainment industry, with many more affected by the practice indirectly. The fixed model is thought to be particularly prevalent in certain sectors, such as: A "sponsor" is typically a wealthy individual—an investor,
exposed the extent of collusion between K-pop stars, nightclub owners, and police.
This upfront investment creates an immediate, massive financial imbalance. Trainees sign contracts—historically dubbed "slave contracts" due to their lengthy duration and predatory terms—that bind them financially to the agency. If a trainee wishes to leave or fails to debut, they can be saddled with insurmountable debt. This manufactured desperation leaves young talent highly vulnerable to coercion. 2. The Power Dynamics of the "Sponsor" Culture The public outcry from these scandals forced South
Ultimately, dismantling the fixed model of prostitution in South Korea's entertainment industry will require a sustained effort from government, civil society, and individuals.
Room salons are an open secret in South Korea’s business culture. In 2023, high-end entertainment sectors like "room salons" recorded over ₩624 billion ($469 million) in sales through corporate credit cards. These venues are permitted under the law as long as activities do not "lead to prostitution," but as a 2020 Korea Times report noted, "it is an open secret that owners use this as a loophole to provide illegal prostitution services".
While Jang Ja-yeon’s case highlights the risks for struggling actresses, the of 2019 revealed a more corporate version of this "entertainment model". At the center was Seungri , a member of the globally famous K-pop group Big Bang. He, along with other partners, operated a nightclub in Seoul's Gangnam district.