The following is the fourth in a series on the anti-graft law or the Kim Young-ran Act which could possibly change Korean society profoundly. ― ED.
By Kwon Mee-yoo, Yun Suh-young, Kim Jae-heun
Classical music in Korea is falling victim to the anti-graft law as most conglomerates will have to reduce or discontinue their support for concerts.
Symphony orchestras and concert organizers will lose the main buyers of bulk tickets, with concerts relying on corporate sponsorship for about half of ticket sales.
"Orchestras are desperate for funding but it's always difficult to find a patron. The new law will discourage companies even further from sponsoring orchestras," said a public relations (PR) official for a renowned Korean orchestra, declining to be named.
Companies receive tickets in return for funding orchestras in Korea, giving them to their VIP customers as part of marketing promotions.
"Companies will find it harder sending out invitation tickets and some are considering ditching sponsorship. I heard that one company has pulled out of sponsorship entirely," the PR official said.
Big musical companies are already seeing revenue from corporate sponsors, which usually take up to 20 percent of the total seats, plunging.
"Year-end is the peak season for theater productions as many companies buy and provide complimentary tickets to their customers as gifts. However, inquiries on group purchases have fallen as they don't want take the risk of violating the Kim Young-ran Act," a spokesman for a major theater production company said. "We are thinking of selling more tickets priced lower than the 50,000-won threshold next year. But it cannot cure all the problems we face as the preferred seats will be much more expensive."
Major domestic companies said they will cut their sponsorship of various cultural events.
"In the middle of October, we are scheduled to hold a concert. Due to the anti-graft law, we cannot give out the tickets to our customers. So, we've decided to invite only the employees of our company. It doesn't make sense at all," a spokesman for a major domestic telecom company said. "The ridiculous law will practically outlaw the sponsorship of classical concerts by big companies, taking a toll on the whole classical music circle, including schools and musicians."
Mulling over press invitations
Another big concern is how to invite journalists to performances as the law states journalists cannot receive any gifts that exceed 50,000 won and that includes tickets for reviewing purposes.
"Rehearsals are open but usually we do not like to open incomplete performances to the press. That's why we're startled by the law and rather confused about what to do," said the orchestra PR person. "We will now be providing a cheaper ticket priced at or below 50,000 won per journalist but for the more expensive concerts, such as those inviting top foreign musicians, we can't provide tickets because they're too expensive. I don't understand why this law applies to press invitations because I heard that the situation isn't like this in other countries."
When asked if there were similar laws overseas regulating journalists from receiving free press tickets to cultural performances, foreign journalists shook their heads.
A French journalist in Paris said that in France, culture journalists get press seats for the first performance on the opening night.
"Normally, media are invited because it's part of their reporting, and it's not a ticket with a price tag," he said.
In response to the anti-graft law, he said, "They should give press tickets to the reporters who are covering that field so the companies can sell tickets in the market."
John Burton, former Financial Times correspondent in Korea, said, "I don't know of any law in other countries that would prevent journalists from attending concerts because they would be legally denied the right to accept expensive tickets. Even in Singapore, which ranks high in the global anti-corruption index, most cultural journalists are normally provided with free tickets, including from state-supported cultural centers."
Less impact on K-pop
Top Korean entertainment agencies like YG Entertainment (YG), S.M. Entertainment (SM) and JYP Entertainment (JYP) said the new anti-graft law will not change their business customs much.
All three agencies had their public relations teams undergo education on the anti-graft law, but are not yet prepared for specific guidelines.
"In the K-pop scene, there isn't much room that could become a problem with the anti-graft law except inviting journalists to concerts," said an SM official. "We barely serve a lunch that goes over 30,000 won and we don't play golf. These days, people don't ask for free tickets to our singers' concert and when they do, we say No."
However, press invitations are still unsolved for the K-pop agencies as well.
"I am thinking that we will have to find alternate methods to invite journalists to cover the concert, but for now, we don't have any specific plan. There is no company being sued on this issue yet and we are just waiting to see how other agencies cope with this problem," the SM official added.
JYP said it will not allow journalists into concerts for free or give out invitations anymore except for showcases.
"Holding idol band showcases is part of our business and we do not charge or sell tickets for participation. On the other hand, concert tickets are for sale and it violates the law," said a JYP official.
YG said they do not have guidelines prepared for now and they are in the process of making some together in cooperation with their law firm.
By Kwon Mee-yoo, Yun Suh-young, Kim Jae-heun
Classical music in Korea is falling victim to the anti-graft law as most conglomerates will have to reduce or discontinue their support for concerts.
Symphony orchestras and concert organizers will lose the main buyers of bulk tickets, with concerts relying on corporate sponsorship for about half of ticket sales.
"Orchestras are desperate for funding but it's always difficult to find a patron. The new law will discourage companies even further from sponsoring orchestras," said a public relations (PR) official for a renowned Korean orchestra, declining to be named.
Companies receive tickets in return for funding orchestras in Korea, giving them to their VIP customers as part of marketing promotions.
"Companies will find it harder sending out invitation tickets and some are considering ditching sponsorship. I heard that one company has pulled out of sponsorship entirely," the PR official said.
Big musical companies are already seeing revenue from corporate sponsors, which usually take up to 20 percent of the total seats, plunging.
"Year-end is the peak season for theater productions as many companies buy and provide complimentary tickets to their customers as gifts. However, inquiries on group purchases have fallen as they don't want take the risk of violating the Kim Young-ran Act," a spokesman for a major theater production company said. "We are thinking of selling more tickets priced lower than the 50,000-won threshold next year. But it cannot cure all the problems we face as the preferred seats will be much more expensive."
Major domestic companies said they will cut their sponsorship of various cultural events.
"In the middle of October, we are scheduled to hold a concert. Due to the anti-graft law, we cannot give out the tickets to our customers. So, we've decided to invite only the employees of our company. It doesn't make sense at all," a spokesman for a major domestic telecom company said. "The ridiculous law will practically outlaw the sponsorship of classical concerts by big companies, taking a toll on the whole classical music circle, including schools and musicians."
Mulling over press invitations
Another big concern is how to invite journalists to performances as the law states journalists cannot receive any gifts that exceed 50,000 won and that includes tickets for reviewing purposes.
Classical music companies do not offer showcases or press previews like other cultural enterprises such as popular entertainment or musicals and most of the press reviews are written based on the actual performance as the artists prefer not to reveal incomplete versions of their concerts in advance.
"Rehearsals are open but usually we do not like to open incomplete performances to the press. That's why we're startled by the law and rather confused about what to do," said the orchestra PR person. "We will now be providing a cheaper ticket priced at or below 50,000 won per journalist but for the more expensive concerts, such as those inviting top foreign musicians, we can't provide tickets because they're too expensive. I don't understand why this law applies to press invitations because I heard that the situation isn't like this in other countries."
When asked if there were similar laws overseas regulating journalists from receiving free press tickets to cultural performances, foreign journalists shook their heads.
A French journalist in Paris said that in France, culture journalists get press seats for the first performance on the opening night.
"Normally, media are invited because it's part of their reporting, and it's not a ticket with a price tag," he said.
In response to the anti-graft law, he said, "They should give press tickets to the reporters who are covering that field so the companies can sell tickets in the market."
John Burton, former Financial Times correspondent in Korea, said, "I don't know of any law in other countries that would prevent journalists from attending concerts because they would be legally denied the right to accept expensive tickets. Even in Singapore, which ranks high in the global anti-corruption index, most cultural journalists are normally provided with free tickets, including from state-supported cultural centers."
Less impact on K-pop
Top Korean entertainment agencies like YG Entertainment (YG), S.M. Entertainment (SM) and JYP Entertainment (JYP) said the new anti-graft law will not change their business customs much.
All three agencies had their public relations teams undergo education on the anti-graft law, but are not yet prepared for specific guidelines.
"In the K-pop scene, there isn't much room that could become a problem with the anti-graft law except inviting journalists to concerts," said an SM official. "We barely serve a lunch that goes over 30,000 won and we don't play golf. These days, people don't ask for free tickets to our singers' concert and when they do, we say No."
However, press invitations are still unsolved for the K-pop agencies as well.
"I am thinking that we will have to find alternate methods to invite journalists to cover the concert, but for now, we don't have any specific plan. There is no company being sued on this issue yet and we are just waiting to see how other agencies cope with this problem," the SM official added.
JYP said it will not allow journalists into concerts for free or give out invitations anymore except for showcases.
"Holding idol band showcases is part of our business and we do not charge or sell tickets for participation. On the other hand, concert tickets are for sale and it violates the law," said a JYP official.
YG said they do not have guidelines prepared for now and they are in the process of making some together in cooperation with their law firm.
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