Discussion on Amendments to the Enforcement Decrees of the Performance Act and National Sports Promotion Act Held at National Assembly... Proposals for Tackling Ticket Scalping and Institutional Improvement

- Korean Society of Sports and Entertainment Law Hosts Policy Forum

- Key Issues Reviewed from Legal, Industry, and Consumer Perspectives

The Korean Society of Sports and Entertainment Law (President: Nam Kiyeon, Professor at Dankook University School of Law) announced that, on June 29, it co-hosted a policy forum with National Assembly members Kim Daesik and Park Jungha at the 11th Conference Room of the National Assembly Members' Office Building, under the theme "Key Issues and Directions for Institutional Improvement in the Amendments to the Enforcement Decrees of the Performance Act and the National Sports Promotion Act."

This forum was organized to review the follow-up enforcement decrees for the amended Performance Act and National Sports Promotion Act, which are scheduled to take effect on August 28, and to collect legal opinions and feedback from the industry. Attendees emphasized the need for an enforcement decree that maintains the intent of preventing ticket scalping transactions while also considering consumer rights and the growth environment of the cultural industry.

Recently, as online reservations for performances and sporting events have become commonplace, issues such as bulk purchases through macros and ticket scalping continue to occur. Experts explained that, in addition to strengthening regulations, measures to establish a secure transaction environment are also needed to enhance the effectiveness of the system.

The amendments to the Performance Act and National Sports Promotion Act are significant in that they provide a legal foundation to eradicate fraudulent reservations using macro programs and the resulting ticket scalping. Accordingly, there is increasing emphasis on designing a system that both ensures the effectiveness of regulations and protects legitimate ticket transactions and consumer rights.

The first presentation was delivered by Professor Seo Jonghee of Yonsei University Law School, who focused on the main points of the enforcement decree, including the standards for imposing fines, the obligations of online intermediary service providers, and procedures for submitting data.

Professor Seo agreed on the need to regulate organized ticket scalping using macros, but pointed out that requiring online intermediary service providers to directly determine the illegality of sales and to delete posts or restrict transactions could excessively expand their legal liability.

She further explained that if business operators are effectively entrusted with legal judgments in a situation where the standards for habitual or commercial activity are not specific, both users and operators may experience legal uncertainty.

She proposed that, rather than judging solely based on the number of sales and transaction amounts, the standards for imposing fines should comprehensively consider the nature, duration, and repetition of the violation, as well as the actual economic benefit gained. She also stated that the scope of data submission should be limited to what is necessary for investigative purposes and that procedures for the collection, use, storage, and destruction of personal information must be clearly specified in the enforcement decree. In addition, she emphasized the need to establish management of overseas business operators and a pan-governmental cooperation system in light of increasing use of overseas platforms.

Next, Professor Kim Juhui of Dongduk Women's University, Department of Arts and Culture Management, presented on the ticket resale market in the K-culture era and strategies for securing global competitiveness.

Professor Kim explained that the ticket resale market is part of the cultural distribution structure connecting content and consumers, and that, due to the nature of performances and sporting events, factors such as excess demand, limitations on seat supply, and schedule changes naturally generate resale demand.

She proposed that, rather than imposing blanket restrictions on transactions, it is necessary to distinguish between organized fraudulent transactions and general resales, and to establish a safe transaction system that includes identity verification, escrow payments, ticket authenticity checks, and compensation for damages. She also explained that improving language, payment, and identity verification processes for overseas fans is a factor that can enhance K-culture's international competitiveness.

The general discussion was moderated by Nam Kiyeon, President of the Korean Society of Sports and Entertainment Law. Panelists included Jeong Jiyeon, Secretary General of the Korea Consumer Federation; Baek Minhyeon, Director of the Korea Online Shopping Association; attorney Kim Sojung; Kim Dongha, Deputy Director of the Performing Arts and Traditional Arts Division at the Ministry of Culture, Sports and Tourism; and Park Jungkyun, Director of Strategic Planning at the Korea Startup Forum.

Attendees agreed on the need to block organized ticket scalping using macros. At the same time, they explained that consumer damage frequently occurs in the form of lost contact, non-delivery of tickets, and refusal of refunds during the transaction process. Therefore, they suggested that, in addition to preventing illegal transactions, an official resale system should be established so that consumers can trade in a safe environment.

Opinions were raised that the standards for imposing fines should comprehensively reflect not only the number of sales and transaction amounts, but also the nature, duration, repetition, commerciality, and actual economic benefit of the violation. It was also discussed that, prior to the imposition of fines, there must be sufficient opportunity for submitting opinions and for explanation by the affected parties.

In addition, rather than maintaining the current enforcement decree, which requires online intermediary service providers to directly determine whether to delete posts or restrict transactions, it was suggested that it would be more appropriate for the government and reporting agencies to establish objective standards and enforcement procedures, with platforms cooperating accordingly. Attendees also agreed that the scope of data submission and the procedures for handling personal information should be defined more specifically.

Along with this, the need was raised to establish a public-private cooperation system involving the government, performance and sports event organizers, ticketing agencies, transaction platforms, and consumer organizations, and to continually monitor market changes, consumer damage cases, and the status of overseas platform usage, thereby supplementing the system as needed.

Nam Kiyeon, President of the Korean Society of Sports and Entertainment Law, stated, "As K-pop performances, professional sports, and musicals expand into the global market, legal and policy reviews concerning ticket transactions are becoming increasingly important," adding, "It is necessary to establish systems that reflect market realities and achieve a balance between consumer protection and industry development."

He continued, "I hope that the various opinions discussed at this forum will be reviewed in the process of finalizing the enforcement decree, and I will continue research and policy proposals for the healthy development of the cultural and sports industries and the establishment of reasonable legal systems."

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