Credit: Office of Rep. Bae Hyun Jin
A public hearing was held at the National Assembly on September 9th for a new bill aimed at protecting the income of underage celebrities, dubbed the “Korean Coogan Law.” The proposal is designed to prevent cases like that of the late actress Kim Sae Ron , where a young star’s earnings are allegedly mismanaged by their family, leaving them in financial hardship as adults.
The bill, introduced by Representative Bae Hyun Jin in June, would legally mandate that 50% of an underage entertainer’s income be placed into a trust, which they could only access upon reaching adulthood.
“While our popular culture, from K-pop to dramas and films, is in a golden age and receiving great love, there are many cases where child and teen entertainers lose most of their income to parents or relatives and suffer from financial difficulties after becoming adults,” Bae stated at the hearing.
Kim Sae Ron Lent Her Father $360,000 at Age 14, Lost It All After His Bankruptcy
She emphasized that the situation of Kim Sae Ron, who earned a significant income as a child star but reportedly suffered from financial hardship throughout her life due to a lack of income protection, must not be repeated.
The proposed legislation is modeled after the Coogan Law in the United States, which was enacted in 1939 and requires 15% of a child actor’s earnings to be set aside in a trust.
Credit: KPPA
“There have been heartbreaking cases where the sweat and effort of young entertainers do not lead to fair compensation,” said Song Eon Seok, the People Power Party’s floor leader. “While other countries have legal measures like mandatory trusts to protect them, Korea’s system still lacks proper safeguards.”
The tragic case of Kim Sae Ron has been a major catalyst for the proposed law. Following her death in 2025, reports emerged that she was burdened with over 1.2 billion won ($880,000 ) in debt, which included a 500 million won ($360,000) loan she had lent her father.
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