The Ministry of Intellectual Property (“MOIP”), which was granted the authority to issue binding corrective orders against acts of unfair competition in 2024, recently issued its first corrective order for an infringement of publicity rights—specifically, the unauthorized use of distinctive signs such as the portraits and names of celebrities. This milestone case highlights that administrative remedies, which are both cost and time efficient, are now available alongside civil litigation to address free‑riding on the fame of K‑Pop idols and other celebrities. The measure is expected to offer significant practical benefits to rights holders, particularly across the entertainment and content industries.

Under the amended UCPA, the MOIP can order cessation and remedial measures when an administrative investigation - initiated either by complaint or ex officio - identifies acts of unfair competition. Such acts include confusion as to source, unauthorized imitation of product shape, misappropriation of business ideas, and infringement of publicity rights. Publicity rights infringement was expressly recognized as an act of unfair competition by the June 8, 2022 amendment to the UCPA and has, from 2023 through 2025, consistently ranked as the second most frequently investigated type of unfair competition, following “confusion as to source”. Previously, the MOIP could only issue non‑binding “recommendations,” which attracted criticism as roughly one‑third reportedly went unheeded. The current enforcement framework allows the MOIP to not only require corrective action but to impose administrative fines of up to KRW 20 million in cases of non‑compliance without legitimate justification, making administrative enforcement more effective as a deterrent. Furthermore, courts handling related civil cases may also request the MOIP’s full investigation file, to which both parties have access under the amended UCPA—an improvement expected to enhance evidentiary efficiency in subsequent litigation proceedings.

In its first corrective order case under the amended UCPA, the MOIP found that four companies had, without authorization, produced and sold photocards, stickers, and other merchandise featuring the names and portraits of six well‑known K-pop groups and 41 individual artists. Sales occurred both through offline retail outlets across several regions and on online platforms. Although these companies had previously promised in April 2025 to cease their infringing conduct, they continued selling the products, with sales volumes estimated to have reached several thousand units. The MOIP determined that this conduct constituted unfair competition—the unauthorized commercial use, contrary to fair trade practices or competition order, of widely recognized indicia (names, portraits, voices, signatures, etc.) possessing economic value—thereby infringing the economic interests of the artists and their agencies.

Invoking the corrective‑order system introduced in August 2024, the MOIP ordered the immediate cessation of sales of the infringing products, disposal of remaining inventory, a prohibition on similar conduct in the future, and four hours of compliance training designed to prevent recurrence. Failure to comply with the corrective order may result in fines of up to KRW 20 million. This first corrective order signals a meaningful shift in Korea’s enforcement landscape, with the MOIP poised to play a more proactive role in addressing unfair competition involving publicity rights and related commercial exploitation.