January 1, 2026, marked a definitive turning point for the South Korean entertainment industry as the Ministry of Culture, Sports and Tourism (MCST) enforced revised standard contracts for pop culture artists and trainees. These reforms aim to dismantle the exploitative practices embedded in the "K-Pop" trainee system, often criticized internationally as "slave contracts."
The new legal framework introduces stringent obligations on entertainment agencies, prioritizing transparency, the protection of minors, and mental health support. A central pillar of the reform is the mandate for financial transparency. Historically, agencies engaged in opaque accounting where training costs—ranging from vocal lessons to plastic surgery—were deducted from artists' earnings without clear documentation. The new contracts require agencies to provide precise, regular settlement reports, detailing revenue and specific expense deductions. This provision is designed to prevent the accumulation of "phantom debt" and ensure that artists are compensated fairly and within a reasonable timeframe. The contracts also specify clear deadlines for the payment of damages in cases of contract termination, resolving the ambiguity of "reasonable periods" that previously allowed agencies to delay settlements indefinitely.
Protections for minor artists have been significantly strengthened. The revised supplementary agreements explicitly prohibit agencies from pressuring young trainees to skip school or drop out, thereby safeguarding their right to education. Furthermore, the regulations impose strict limits on working hours for minors and ban any coercion to participate in performances that pose health or safety risks. These measures address long-standing concerns about the developmental impact of the grueling K-Pop training regimen. Additionally, the reforms introduce a statutory duty of care regarding mental health. Agencies are now legally required to provide access to counseling and psychiatric treatment for trainees and artists, expanding the scope of employer liability to include psychological well-being. This creates a legal recourse for artists suffering from burnout or depression due to agency mismanagement. The Korea Fair Trade Commission (KFTC) has endorsed these measures, following investigations into major agencies like HYBE, SM, and YG Entertainment, ensuring that the new standards are applied uniformly across the sector.
Source: Respawn