Scalpers Hounding Audiences at Performance Venues… Will They Disappear Faced with 50-Fold Fines?
Revised Performance Act Takes Effect Today… Chances of Eradicating Ticket Scalping
Penalties May Be Imposed Regardless of Whether Macros Were Used
Additional Economic Sanctions, Including Fines, Confiscation, and Recovery of Illicit Gains
Performing Arts Industry Welcomes "Measures to Recover Proceeds of Crime"
Year-End Concert Ticket Reservations Face a Test of Effectiveness
[Edaily Starin KIM HYUNSIK Reporter] Legal measures to eradicate ticket scalping—long considered a chronic problem in the K-pop industry—are being further strengthened. The amended Performance Act, which regulates the illegal purchase and sale of tickets regardless of whether macro programs (programs that automatically repeat specified commands) are used and imposes fines of up to 50 times the sale price, takes effect today (the 28th). All eyes are on whether the amended law, which expands the scope of punishable offenses and sanctions, will prove effective in rooting out the scalping trade. (Graphic by Reporter Kim Jeong-hoon) ◇Penalties Even Without Macros… Fines of Up to 50 Times the Ticket Price Although the government estimates the scale of the scalping market in the performing arts and sports sectors to exceed 100 billion won annually—indicating a significant rise in transaction volume—legal measures to curb this activity have been insufficient. The previous Performing Arts Act only prohibited the act of purchasing tickets using macros and reselling them at a markup. In practice, it was difficult to prove whether macros were used during enforcement, and scalping transactions not involving macros fell outside the scope of the law. The amended law defines “unauthorized purchases” as any act that circumvents or obstructs the fair purchasing process established by the original seller for the purpose of resale. It also regulates the habitual or commercial sale or brokerage of tickets at a price higher than the purchase price—without the original seller’s consent—regardless of whether a macro was used. Engaging in unlawful purchasing or selling is punishable by up to one year in prison or a fine of up to 10 million won. While the level of criminal punishment remains the same as before, new economic sanctions—such as administrative fines, forfeiture, and recovery of ill-gotten gains—have been introduced. Illegal sellers may be subject to administrative fines of up to 50 times the sales amount. Profits obtained through illegal purchases or sales may be confiscated or recovered, and a system to award rewards to those who report such misconduct has also been introduced. A sign warning of crackdowns on scalping was installed at the venue for the full-group comeback concert by the group BTS, held at Gwanghwamun Square in Seoul last March. (Photo = Yonhap News) ◇Industry Also Strengthens Monitoring…Effectiveness to Be “Put to the Test” The performance industry welcomes the law’s implementation, noting that it clearly establishes the illegality of scalping and provides a means to recover criminal proceeds. As ticket reservations for year-end concerts ramp up in earnest starting next month, the effectiveness of the amended law is expected to be put to the test. The industry has also rolled up its sleeves to crack down on and report scalping. The Korea Popular Music Performance Industry Association (KPMA), which carries out the Korea Content Agency’s scalping monitoring project, plans to use an automated system incorporating artificial intelligence (AI) and optical character recognition (OCR) technology to monitor posts on domestic and international secondhand trading platforms and social media services (SNS) to gather evidence of illegal transactions. Ko Ki-ho, chairman of the Association, said, “We will strive to ensure that actual cases of punishment are brought about through active monitoring and reporting.” However, it is difficult to conclude that scalping will disappear immediately simply because the law has taken effect. To establish illegal resale, it must be determined whether a transaction is conducted for “habitual or commercial” purposes; however, the law does not specify concrete criteria regarding frequency or price. An official from the Ministry of Culture, Sports and Tourism explained, “Based on existing case law, we plan to examine the selling price, frequency, intent to sell continuously, and whether there is a pursuit of excess profits to determine whether the activity constitutes habitual or commercial sales according to social norms.” There is also the possibility that public posts may list a price below the face value, only to demand a premium via private messages or separate bank accounts. If transactions move to closed social media platforms or overseas platforms, it becomes even more difficult to verify the seller’s identity and the actual transaction amount. There are also concerns that so-called “ticket reselling”—where audience members who have seen their favorite artist’s performance at a music festival featuring multiple acts resell their wristbands at prices below face value during the show—falls into a regulatory gray area. Yoon Dong-hwan, CEO of MY Music (and a member of the Cultural Arts Policy Advisory Committee), emphasized, “In the early stages of the law’s implementation, there will likely be some trial and error in the process of detecting illegal transactions and bringing them to punishment.” He added, “Nevertheless, we must steadily accumulate cases of punishment to spread the awareness that scalping is a clear illegal act.”
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