KOR- State support is mandatory, yet 0% equity... Trademark rights are also conditional
- No precedent for a state-led popular music industry... Questionable whether it will succeed
- Too many artists in need of support to spend on a blind budget
- I believe in the sincerity, but laws and procedures must be followed... True that it was poorly prepared
- Problem is the state gains no revenue... Need to watch the contract renegotiation
- Leak of confidential contract? It was material permitted for audit use
- Jang Dong-hyeok as longest-serving party leader? Lawmakers have no interest in him
- Leadership already ran aground... Replacement will happen naturally anyway
- Twisted sense of rivalry intensified... I even feel a bit of pity for him
■ Broadcast: SBS Kim Tae-hyun's Political Show (FM 103.5 MHz 7:00 – 9:00 AM)
■ Date: January 12, 2026 (Mon)
■ Host: Attorney Kim Tae-hyun
■ Guest: Rep. Bae Hyun-jin, People Power Party
[Kim Tae-hyun]: Last week, Popular Culture Exchange Committee Co-Chair Park Jinyoung drew attention when he appeared as a witness at the parliamentary audit and answered questions from opposition lawmakers. Before the audit, he appeared on Political Show to state his position regarding various issues and allegations surrounding the K-culture festival, the so-called Phenomenon event. Today, we speak with People Power Party Representative Bae Hyun-jin, a member of the National Assembly's Culture, Sports, and Tourism Committee, who publicly raised these concerns. Hello.
[Bae Hyun-jin]: Hello.
[Kim Tae-hyun]: Representative, how was last week's committee audit with JYP?
[Bae Hyun-jin]: Since many people watched it, I think they generally understand the atmosphere. I believe we discussed the details thoroughly with Co-Chair Park Jinyoung and the Culture Minister.
[Kim Tae-hyun]: Were all the questions and doubts you had resolved?
[Bae Hyun-jin]: It wasn't merely a matter of questions or suspicions. I was clearly pointing out issues in the contract that the state signed with a specific private company. Regarding that, the Culture Minister himself acknowledged that it was an extremely unfair and flawed contract, and he decided to push for renegotiation. October 23 is our committee's comprehensive audit. Since he said he would prepare a renegotiated contract proposal by then, we will have to watch and see.
[Kim Tae-hyun]: Let's look at them one by one. During the audit, you quoted a comment saying, "There are expressions in the comments calling it 'the culture industry's Daejang-dong project.'"
[Bae Hyun-jin]: Yes.
[Kim Tae-hyun]: So during the audit, you viewed the Phenomenon event as a kind of preferential treatment. What led you to see it that way?
[Bae Hyun-jin]: Looking at the contract, its contents are extremely unfair and warrant suspicion of being a preferential project. The state is to invest tens of billions of won indefinitely, yet the state retains a 0% stake permanently. Furthermore, regarding the rights to this project, the contract was structured so that if the state wants to participate in the future, it cannot do so without the permission of JYP and the four companies at the center of this, especially JYP.
[Kim Tae-hyun]: So it is not unconditionally a 50-50 split?
[Bae Hyun-jin]: For the domestic business, JYP gave 50%, but to use the trademark commercially, permission must again be obtained from JYP.
[Kim Tae-hyun]: Really?
[Bae Hyun-jin]: JYP has no obligation to unconditionally grant permission either. So the flaw in the contract is that while the state has the obligation to invest budget funds and provide support, it has zero rights to use it. On JYP's side, everything is framed as 'may do,' with no mandatory obligations. Even if they fail to keep their promises to the state, there is no provision—such as rendering the contract void or imposing a penalty, which is standard in private sector contracts. That clause is missing.
[Kim Tae-hyun]: So you are saying that while the state is obligated to invest budget funds, having JYP and the state share the domestic business trademark 50-50 is not an obligatory clause, but rather framed as something that 'may' be done?
[Bae Hyun-jin]: They divided it 50-50, but only strictly when it comes to using the trademark.
[Kim Tae-hyun]: In terms of using it.
[Bae Hyun-jin]: That's for domestic rights. The overseas trademark rights belong 100% to JYP.
[Kim Tae-hyun]: Is that so?
[Bae Hyun-jin]: And regarding the contract, Co-Chair Park Jinyoung appeared on your show last time and said it would be transferred to a dedicated corporate entity, but even that is not mandatory. So even if JYP does not transfer it to dedicated entities, there is no recourse. More importantly, there are no plans whatsoever regarding how this dedicated entity will be formed or what they will do moving forward. This means a so-called 'blind budget' would be poured in, but the Culture Ministry's budget is the smallest slice of the pie among all government ministries. There are many artists whose very livelihoods depend on this budget. That is the point I raised.
[Kim Tae-hyun]: When Co-Chair Park Jinyoung was interviewed by me in that very seat the day before the audit, he said, "We included three clauses to maintain public interest." But the next day at the audit, you said, "There are no such clauses in the contract." Has anything been supplemented or clarified since then?
[Bae Hyun-jin]: There is none. First, he claimed they were in the contract, but they are not in the contract. At the audit hearing, Co-Chair Park Jinyoung even asked, "Minister, did we submit it during the business combination review?" So we obtained and reviewed the business combination review documents, and it wasn't there either. It seems those discussions were probably just exchanged verbally between the two of them, as there wouldn't be a side contract.
[Kim Tae-hyun]: Looking at your Facebook post from last Thursday, you wrote: "Culture Minister Choe Hwi-young acknowledged the flaws in the unfair contract that granted all authority to JYP and announced plans to pursue renegotiation." So this came directly from the minister's mouth at the audit?
[Bae Hyun-jin]: Yes. The minister stated it repeatedly, about three or four times. Who among us would want to derail this project? But if you look at the fundamental question, haven't you wondered: Why should the state suddenly intervene in popular culture, especially the K-pop business?
[Kim Tae-hyun]: They could just let the private sector—whether JYP or HYBE—handle it on their own.
[Bae Hyun-jin]: That is how it has been done until now. Popular culture and the popular music industry are all about trends. There has never been a case anywhere in the world where the state spearheaded such an industry; I have never seen it before. There is a fundamental question of whether this is something the state should be subsidizing. The contract specifies that all future projects with JYP must be conducted in writing, so even if the assurances of fairness you mentioned were conveyed verbally, they are legally void. I wonder why such a contract was signed—I don't know if you saw the video I posted on Instagram about this.
[Kim Tae-hyun]: Yes.
[Bae Hyun-jin]: Afterward, Co-Chair Park Jinyoung came to see me once it ended. As we exchanged greetings, I told him that I was speaking to him not as an artist—the so-called 'cultural president' of South Korea for over 30 years—but as the head of a presidential committee, making a request to him as the head of an institution. He understood that fully. I told him that to use the Culture Ministry's budget, things must be done within the boundaries of law and due process. But he claimed that they were taking three to four times the losses, right? You mentioned that on your show as well, didn't you?
[Kim Tae-hyun]: Yes.
[Bae Hyun-jin]: That they were making a huge sacrifice to take part in this national project.
[Kim Tae-hyun]: He did say that at the audit. That if the private sector held concerts independently, they could make much more money.
[Bae Hyun-jin]: I found that puzzling as well. Even if that was his intention, why would companies like HYBE, SM, and YG take tens of billions of won in losses to do this project with the state? They already do well on their own. But first of all, those alleged losses have never been officially estimated. And when speaking privately, Co-Chair Park Jinyoung actually said that the state was needed because it was difficult to do in the private sector. I don't know the exact circumstances behind the discrepancy between what he said in front of the microphone and what he said off-microphone.
[Kim Tae-hyun]: He said something similar during his interview with me as well—that there are limitations to doing it solely among private entities, and that state assistance is necessary. Then could his claim—that they could make more money doing concerts on their own and that they came here making sacrifices—be different from the facts?
[Bae Hyun-jin]: It isn't true. I think there was a private sector need, especially a need on the part of JYP among the four companies.
[Kim Tae-hyun]: Really?
[Bae Hyun-jin]: It seems there was some need. Normally, in cases like this, the government provides budget support and holds an open call. They invite companies wanting to participate to bid, and the government reviews the proposals to provide opportunities by balancing promising companies, companies with potential, and smaller firms that need support. And because the resulting revenue stems from taxpayers' money, a structure is designed so that a portion of authority or revenue returns to the government. However, under this contract, the government must indefinitely pour in tens of billions of won—there is no term limit in the contract—yet there are zero rights or revenue returning to the state. Furthermore, this dedicated entity wasn't established through a fair process by presenting it as a public-interest project and asking companies to participate. Instead, it started with the four major corporations on the Popular Culture Committee—which reportedly account for about 63% of our country's popular culture industry—deciding amongst themselves, "Let's do this together." I saw that as extremely problematic.
[Kim Tae-hyun]: Did Park Jinyoung say anything else when you spoke separately after the audit? For example, asking you to support it because he will do it with sincerity?
[Bae Hyun-jin]: He did say he would do it with sincerity. And of course, I do not doubt his sincerity.
[Kim Tae-hyun]: His sincerity itself.
[Bae Hyun-jin]: He is, after all, an artist representing the Republic of Korea. But national budget funds cannot be spent based solely on someone's goodwill. Whenever we implement any project, every single penny must be reported.
[Kim Tae-hyun]: That's right.
[Bae Hyun-jin]: That is why I told him that because the state is not investing in artist Park Jinyoung or the company JYP, but carrying out a national project, it must be conducted within the law and established procedures. Many people focused on things like Park Jinyoung having a high income, but rather than that, I repeatedly stressed the procedures he must observe now as a quasi-public official.
[Kim Tae-hyun]: Minister Choe Hwi-young said something at the audit: "I fully understand the issues raised by the lawmaker, but please also understand the unique nature of how this process unfolded. It's not as if the four major entertainment agencies got involved to pursue vested interests."
[Bae Hyun-jin]: The context was this: Why did the Culture Ministry do nothing from the time it was launched on October 1, 2025, until six months had passed the following year? In particular, about five months had passed when JYP filed for all the trademark rights in Mexico and Japan. In response, he cited speed as the reason for that uniqueness. But I believe this was dereliction of duty and an abandonment of responsibility by the Culture Ministry. Because they chose not to intervene, I believe Co-Chair Park Jinyoung is now placed in an even more difficult position.
[Kim Tae-hyun]: So as Minister Choe Hwi-young stated during the audit, they will renegotiate the unfair parts of the contract. Has there been any progress since then?
[Bae Hyun-jin]: For now, we are waiting because the Culture Ministry agreed to report to the National Assembly by October 23, the comprehensive audit. Many members of our Culture Committee are legal professionals, and they were all shocked upon reviewing the existing contract. Why? First, there is no specified start date in the contract. Furthermore, as I mentioned earlier, it is a one-sided contract where the state has only the obligation to invest budget funds while JYP has only rights. When executing the contract, JYP and the Culture Ministry are supposed to write down their respective personal and organizational details, but the Culture Minister only stamped his seal—not even his name was written.
[Kim Tae-hyun]: Really?
[Bae Hyun-jin]: Yes. Even Co-Chair Park Jinyoung acknowledged these numerous careless issues, saying, "It was sloppy. It is very sloppy." And the Culture Minister also recognized the severity of it.
[Kim Tae-hyun]: Then at the comprehensive audit on October 23, there will be a report on whether the contract has been revised. The minister will naturally attend that day, but will Park Jinyoung appear on October 23 as well?
[Bae Hyun-jin]: Well, since we already heard Co-Chair Park Jinyoung's position, I wonder if there is a need to bring him in again. Since this is a state-run project, the minister, who is the head of the country's culture ministry, should now take responsibility. For us, that is the point. The parliamentary audit exists because we are a country with separation of powers—it is where parliament monitors whether each government ministry is spending its budget properly and sets guidelines to correct what is wrong. In this case, since the party involved clearly admitted fault, it is something that must be corrected.
[Kim Tae-hyun]: By the way, Representative, there was a minor disruption during the audit that day. When you displayed the contract on screen, the ruling party raised objections, asking why you disclosed something that was confidential. Was there any issue with disclosing it?
[Bae Hyun-jin]: After news reports raising questions about Phenomenon appeared in other media outlets, Co-Chair Park Jinyoung and the Popular Culture Committee completely and unilaterally cut off contact with all committee members.
[Kim Tae-hyun]: Is that so?
[Bae Hyun-jin]: And in fact, they had an obligation to submit materials for the audit, but because they failed to do so, I happened to be the only one who had seen the contract.
[Kim Tae-hyun]: Really?
[Bae Hyun-jin]: So because they didn't know the contents, no one could object to my point that this must be rectified; instead, they asked irrelevant questions about why confidential material had been leaked. But in the contract, they explicitly stated in writing that it could be used for audits, meaning parliamentary audits. Furthermore, the confidentiality clause already stated that it could be used if the contents had been made public, so there was no issue whatsoever. And Co-Chair Park Jinyoung had already revealed the contents the previous day on the Kim Tae-hyun Show, not even at the audit.
[Kim Tae-hyun]: The contents?
[Bae Hyun-jin]: Yes. So there was no legal defect.
[Kim Tae-hyun]: I see. Representative, since we have a little time left, let me ask a few questions about party affairs. Looking at the calendar, October 25 is apparently the day Leader Jang sets the record as the longest-serving leader of the People Power Party since its launch, once October 25 passes. Under the current circumstances, it seems he could smoothly serve out his two-year term. What is the atmosphere within the party?
[Bae Hyun-jin]: Well, most of our lawmakers currently have no interest in Leader Jang Dong-hyeok.
[Kim Tae-hyun]: Really? Why is that? Because at one point before the local elections, there was talk of him stepping down. I don't know about the local elections—Leader Jang might interpret it differently, but according to media analyses, the People Power Party's local election results were poor. Yet since then, talk of demanding Leader Jang step down has completely died down. Has lawmakers' interest simply faded regarding Leader Jang serving out his term?
[Bae Hyun-jin]: I think Leader Jang's leadership had already run aground significantly before the election. Regarding what came after, he is merely holding on, and lawmakers seem to think that leadership will naturally change when the time comes.
[Kim Tae-hyun]: By 'naturally,' do you mean...
[Bae Hyun-jin]: I think most lawmakers feel: Is there really a need to forcefully drag Leader Jang Dong-hyeok down like that?
[Kim Tae-hyun]: So you're saying they believe his authority has already diminished anyway?
[Bae Hyun-jin]: In fact, no one is interested in what Leader Jang is doing.
[Kim Tae-hyun]: Do you think Leader Jang will run again at the next national convention if he completes his two-year term?
[Bae Hyun-jin]: I think he will run.
[Kim Tae-hyun]: Really?
[Bae Hyun-jin]: Because our Leader Jang Dong-hyeok harbors presidential ambitions, I think he will keep running. I believe all these troubles—the unreasonable disciplinary proceedings against Representative Han Dong-hoon and the like—were triggered by a twisted sense of rivalry that should never have manifested. Watching Jang Dong-hyeok the person, whom I was close to and fond of in the past, I often feel quite a bit of pity for him. But as Party Leader Jang Dong-hyeok, his leadership has long been damaged, so there is no real need... When everyone is busy diligently handling the parliamentary audit, I don't think we need to count how many days he has been in office. The media might have some interest, though.
[Kim Tae-hyun]: I see. Representative, how is the issue of Representative Han Dong-hoon's reinstatement to the party being resolved right now?
[Bae Hyun-jin]: I believe that, too, will take its natural course. For now, former Leader Han Dong-hoon is maintaining ties with lawmakers with his own sincerity, and since entering the National Assembly, he has been active in raising significant issues regarding Justice Minister nominee Kim Seung-won, proving himself to the public during this time. I believe it will follow its natural course.
[Kim Tae-hyun]: Understood. We will wrap it up here. That was People Power Party Representative Bae Hyun-jin. Thank you.
[Bae Hyun-jin]: Thank you.
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※ Please note: This article was translated by AI and may contain errors.
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