
South Korean authorities have announced that CL, singer and rapper of the legendary girl group 2NE1, will be referred to prosecutors for allegedly operating an unregistered music label for several years, which may violate the Popular Culture and Arts Industry Development Act.
According to the Seoul Yongsan Police Station, the case will move forward without CL being detained. Her company, Very Cherry, which was established in 2020, is also included in the referral.
She is accused of running the company for more than five years without registering it, a requirement intended to ensure transparency in artist contracts and protect performers. Penalties for violations can include up to two years in prison or fines of 20 million won ($13,600).
During the investigation, authorities cleared actor Gang Dong-won of similar charges, noting that he had no direct involvement in managing his agency. As a result, only the company itself and its executive leadership will face legal review.
Attention on unregistered agencies has intensified since September 2025, when reports surfaced that an independent label representing singer Sung Si-kyung had operated for over a decade without proper registration. Following these revelations, the Ministry of Culture, Sports and Tourism carried out a nationwide compliance initiative through the end of last year, urging entertainment companies to complete their registration and adhere to legal requirements.