[Op-Ed] Are Crackdowns on Concert Ticket Scalping Really the Answer?

Because of K-pop’s immense popularity, concert tickets always sell out in an instant. Fans who fail to get tickets then turn to scalpers. A review of actual resale sites found that tickets for a popular girl group’s concert were being sold for as much as 3 million won. This reflects the convergence of two forces: scalpers using programs to reap unfair profits, and fans willing to pay a premium to secure good seats.

The government plans to strengthen regulations even further. Last March, Article 4-2, Paragraph 2 of the Performance Act was newly established to eradicate ticket scalping. It states: “No person shall engage in the improper sale of admission tickets, etc. by using a program that automatically and repeatedly enters designated commands into an information and communications network under Article 2, Paragraph 1, Subparagraph 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.” In other words, it bans ticket scalping carried out through so-called “macro” programs. The Ministry of Culture, Sports and Tourism is also pursuing a revision that would expand punishable conduct to all ticket-scalping sales, regardless of whether macros are used.

Major Korean entertainment agencies are also strengthening identity verification procedures for concert entry. HYBE Entertainment, which exerts enormous influence over the K-pop industry, announced that it will first introduce “Face Pass,” which uses facial recognition for identity verification, in February and then expand its use going forward. This has prompted serious concern and backlash from fans, who worry that biometric data—one of the most sensitive categories of personal information—could be leaked in the process.

Crackdowns alone will not solve the problem. Yoon Heejin, head of Interpark’s Concert Business Division, argued that if ticket scalping in the secondary market is blocked and defined as illegal and punishable, demand will naturally decline, while also acknowledging that blocking macros 100 percent is virtually impossible. In reality, ordinary consumers find it difficult to book tickets themselves.

The reality is that demand for scalped tickets continues to grow, even at very high prices. If so, consumers’ freedom of choice should be guaranteed, and a safe secondary ticket market should be activated. Interpark recently launched Play&Stay, a package product combining performances and accommodations. At first, the dominant reaction was that it was too expensive, but because it offered relatively good seats, buyers reported high satisfaction.

Ticket resale takes many forms beyond professional sellers who continuously resell tickets using macros. People also transfer tickets due to personal circumstances or exchange seats with other fans. The problem is that even these private, person-to-person transactions are regulated uniformly. As a kind of Caligula effect, the harsher the regulations become, the more determined and resourceful fans become as well. In the end, tickets are traded under the table, and some people fall victim to fraud. Ticket scams that exploit desperate fans are not even easy to prosecute.

Rather than defining ticket resale as illegal and banning it, it should be legalized, and a safe trading environment should be created to meet consumer demand. While it is taken for granted that limited-edition clothing or shoes are sold with resale premiums, tickets alone are subjected to excessive regulation. Some argue that tickets should be treated differently from other goods because they have a fixed expiration date. However, given that demand far exceeds supply and that there is excess demand from buyers willing to pay a premium, a similar logic should apply to tickets as well.

The trading system used for limited-edition goods should be actively introduced into the ticket market too. KREAM, a well-known online brokerage platform, invested a large sum in Ticket Bay, a ticket resale platform. The decision appears to have been based on the similarities between the two platforms. On KREAM, prices are determined by the principles of supply and demand. Transactions take place between individuals, but KREAM directly inspects products and guarantees their authenticity. Likewise, free trade should be guaranteed for tickets as well, while requiring sellers to verify authenticity and activating reporting functions.

The answer is not one-sided crackdowns and regulation. It is to respect consumers’ freedom of choice through the legalization of ticket resale. Meeting consumer demand is the future of the K-pop industry, and if it does not serve consumers, it will inevitably decline in the end.

Seojin Kim, Intern Researcher, Center for Free Enterprise (CFE)

---

Original title: [칼럼] 콘서트 암표, 과연 단속만이 답인가

Author: Seo-jin Kim

Date: 2025-05-16

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&pn=1&idx=27666