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Labor Ministry Launches Planned Inspection into 5 MCN Companies over 'Free Labor' Concerns for Creator Agencies


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▲ Ministry of Employment and Labor

The Ministry of Employment and Labor is launching a planned inspection to address issues such as "free labor" at Multi-Channel Network (MCN) companies, which are agencies that support creators active on platforms like YouTube and Instagram.

The ministry announced today (September 23) that starting on September 28, it will select and inspect five suspected violating businesses, focusing on the Seoul region where MCN company headquarters are concentrated. The selection will take into account sales revenue, number of employees, and history of reported labor law violations.

MCNs are companies that support internet broadcasters and influencers active on platforms such as YouTube, Instagram, and TikTok.

While the market size has grown rapidly in recent years, labor management systems have not kept pace, raising concerns over potential infringements on labor rights.

In this planned inspection, the ministry plans to examine overall compliance with labor-related laws, including violations of working hours and unpaid wages, as well as the abuse of comprehensive wage systems that lead to free labor and the prohibition of scheduled penalties.

Furthermore, if any violations of the law are confirmed, the ministry plans to take strict measures.

Labor Minister Kim Younghoon emphasized, "While the MCN industry, including YouTube, has grown and become more glamorous in recent years, a blind spot in worker rights protection exists behind the scenes. As the majority of these workers are young people who are new to society, we will thoroughly supervise illegal and unlawful operations."

(Photo: Provided by the Ministry of Employment and Labor, Yonhap News)

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