Despite Surge in Online Scalping, Enforcement Falls Short... Comprehensive Overhaul of Laws and Systems [War on Scalping]

Debate Over Effectiveness of Fines
Shift Toward Surcharges and Administrative Penalties

The persistent prevalence of scalping in the performing arts and sports sectors is primarily due to the difficulty of detection and the limited effectiveness of existing penalties. As criticism mounts that low-level criminal sanctions are insufficient to curb market disruption, the National Assembly and the government have decided to revise the Performing Arts Act and the Sports Promotion Act to establish a penalty system centered on administrative fines and surcharges. There is also consideration of expanding enforcement to cover all transactions exceeding face value, reinforcing a strict zero-tolerance stance aimed at eradicating scalping at its root.

Techniques and Methods Continue to Evolve... Penalties Remain Lenient

From 2023 through August of this year, a total of 5,405 reports of scalping in the performing arts sector were filed. Of these, only 306 cases, or 5.6 percent, were confirmed as "valid reports" involving actual resale at a premium by the Korea Creative Content Agency. This information was disclosed last month by Assemblyman Park Suhyeon of the Democratic Party of Korea, citing data from the Ministry of Culture, Sports and Tourism during a parliamentary audit. Even allowing for some statistical error, these figures illustrate the ongoing difficulty of detecting scalping.

Despite the recent emergence of scalping as a social issue, enforcement remains weak. This is because technical and methodological tactics, such as the use of macros, are becoming increasingly sophisticated, and awareness of the severity of the problem remains low-evidenced by the fact that regulations penalizing online scalping were only introduced in 2023.

Macro technology, often identified as a hotbed for scalping, is advancing as rapidly as general IT technology. An official from a ticketing platform, speaking on condition of anonymity, explained, "Even when we strengthen security, attackers keep finding ways to breach it. New techniques keep emerging, and sometimes the methods become so sophisticated that they are almost impossible to detect mechanically."

Until 2022, the only real legal basis for punishing scalping was the Minor Offenses Act, enacted in 1973. This law only targeted the resale of tickets at a premium at physical locations such as theaters, stadiums, train stations, and ferry terminals, making it difficult to regulate online transactions. The penalties were limited to detention or a maximum fine of 200,000 won, rendering them largely ineffective.

It was not until the 2023-2024 revisions to the Performing Arts Act, the Sports Promotion Act, and the Sports Facilities Act that online scalping became a formal target of enforcement. However, even these revisions required proof of macro usage, limiting their effectiveness. In particular, transactions conducted on secondhand trading platforms are virtually impossible to regulate unless macros are used.

The current penalties-imprisonment for up to one year or a fine of up to 10 million won-are still considered too lenient. Criminal prosecution requires investigative agencies to directly prove illegality, and due to limited resources, it is difficult to focus investigative capacity on relatively minor offenses such as scalping.

Revision of Performing Arts and Sports Promotion Acts... Shift to Surcharges as Main Penalty

In light of these issues, the National Assembly has begun the process of revising the provisions on scalping in the Performing Arts Act and the Sports Promotion Act, having determined that the current penalties are ineffective. The relevant subcommittee plans to discuss the amendment during this regular session of the National Assembly. Although the Sports Facilities Act was also revised in 2023-2024, the amendments to the Performing Arts Act and the Sports Promotion Act are being prioritized, as general sports facilities such as swimming pools and gyms experience relatively little scalping damage.

The core of the new amendments is to shift from criminal penalties to an administrative sanction system centered on fines and surcharges. Criminal fines require complex procedures and result in a criminal record, but administrative surcharges and fines can be imposed immediately upon confirmation of a violation, making them more effective. As a result, the deterrent effect on scalping is also expected to increase.

President Lee Jaemyung also recently emphasized at a Cabinet meeting, "We must abolish ineffective criminal penalties and introduce surcharge regulations." Lee Sunyoung, Director of the Sports Bureau at the Ministry of Culture, Sports and Tourism, stated, "The main reason scalping enforcement has been inadequate is because penalties have focused on criminal sanctions. We plan to add a system of surcharges and administrative fines that can swiftly cut off economic gains." She added, "We are also considering a strong amendment that would define any ticket traded above face value as a scalped ticket. In this case, there would be no need to separately prove the use of macros, making enforcement much easier."

Some experts suggest that a revision of the Information and Communications Network Act is necessary to fundamentally block scalping. The current law only bans the distribution of programs that damage systems, data, or software, or interfere with operations. Professor Lee Sungyeop of Korea University’s Graduate School of Technology Management commented, "Macros may temporarily increase traffic, but since they do not cause system failures or damage, it is difficult to prosecute under current law. Given the many innocent victims of scalping, it is necessary to either interpret the concept of 'network disruption or damage' more broadly or introduce new regulations specifically targeting macros."

This content was produced with the assistance of AI translation services.