Law firm Hwa Woo, led by attorney Lee Myung-soo, announced on September 30 that it co-hosted a policy seminar with the Korea Copyright Protection Agency on September 29 at the National Assembly's first seminar room. The seminar focused on "Challenges and Solutions for the Development of the Korean Entertainment Industry: Seeking Institutional Improvements to Eradicate Online Copyright Infringement and Cyber Illegal Activities."
Hosted by Lee Jae-jung, chair of the National Assembly's Culture, Sports and Tourism Committee, the seminar aimed to address the serious damage the K-entertainment industry is facing due to illegal online reproduction and the spread of false information by cyber racketeers, while seeking effective legal and institutional improvements.
Key attendees included Lee Jae-jung, Lee Myung-soo, and Yoon Sung-cheon, head of the Korea Copyright Protection Agency, who delivered welcoming remarks. Numerous lawmakers from both the ruling and opposition parties, including Choi Min-hee, Lim Ok-kyung, and Jeong Jun-ho from the Democratic Party, as well as Jo Eun-hee and Lee Jeong-moon from the People Power Party, also participated.
The seminar consisted of two sessions discussing various aspects of victim relief for online copyright infringement and responses to defamation caused by cyber racketeering.
The first session, titled "The Surge of Online Copyright Infringement and Institutional Improvements for Victim Relief," featured a presentation by Ahn Sang-pil, deputy chief of MBC, who discussed "Institutional Gaps and Improvements in Responding to Online Copyright Infringement."
Ahn pointed out that despite South Korea maintaining a surplus in copyright trade for 13 consecutive years since 2013, there are no effective mechanisms in place to remedy copyright infringement damages. He highlighted the issue of inadequate compensation, where even if a judgment is made against infringers, they often lack the financial resources to pay, leaving only bad debts. He proposed improvements to the confiscation and recovery system and noted that server hiding through Content Delivery Networks (CDNs) is a primary means of illegal activity, yet those who directly infringe are often exempt from sanctions.
In response, attorney Seol Ji-hye of Hwa Woo emphasized the need to shift the policy focus from direct infringers to holding online service providers (OSPs) accountable for providing essential tools for online illegal activities.
Seol stated, "We must establish precedents that recognize the responsibility of OSPs that assist in online illegal activities to minimize infringement and ensure the effectiveness of administrative sanctions," calling for institutional support to create such precedents.
The second session addressed "The Economic Impact of Defamation by Cyber Racketeering on the K-Entertainment Industry and Response Strategies," with a presentation by Professor Kang Hyung-koo from Hanyang University, who discussed "The Economic Effects of Cyber Racketeering Defamation on K-Entertainment."
Kang provided empirical analysis of the sales, reputation, and supply chain damages caused by the spread of false information, stating, "The core asset supporting the annual revenues and future cash flows of the top four K-entertainment companies—HYBE, SM, JYP, and YG—is their reputation, and the reputational shock from cyber racketeering simultaneously transfers to the sales and capital markets."
According to Kang's analysis model, the revenue loss due to cyber racketeering amounts to approximately 637.2 billion won, and if false news spreads overseas, the stock value of the four major entertainment companies could decrease by 214.3 billion won. He suggested that even with the same level of blocking intensity, faster response times maximize exposure prevention, recommending a comprehensive system overhaul that combines speed, monitoring, compensation, fines, and revenue recovery.
Jang Jun-won, a specialist at Hwa Woo, noted, "The issue of cyber racketeering goes beyond mere criminal punishment; it directly relates to protecting the essential value of artists in the industry."
Jang pointed out that hesitating to respond poses a significant risk to companies, stating, "If companies actively engage with a group of specialized lawyers that integrate cyber investigations and online responses, they can sufficiently minimize the damage to corporate value and the shock to the market and society caused by the tarnishing of artists' reputations."
Hwa Woo plans to compile the opinions of experts presented at the seminar into specific legislative and policy proposals aimed at preventing online copyright infringement and eradicating cyber illegal activities, while continuing to expand legal support for the rights of K-content and entertainment companies.
* This article has been translated by AI.
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