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Yang Hyun-suk, the chief and founder of YG Entertainment, is being investigated by police over allegations that he provided prostitutes to foreign investors ― the same charges facing former BIGBANG member Seungri, one of the celebrities managed by the agency.
Police said Tuesday they would look into the allegations involving the head of one of the nation's top entertainment agencies, reported by an MBC investigative program the previous night.
Despite a strong denial from Yang, the police may question involved figures to verify whether sex services were provided, and the YG founder may also undergo questioning.
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| Yang Hyun-suk, CEO of YG Entertainment |
At the dinner, 25 women were in attendance including more than 10 prostitutes who were brought from an adult entertainment establishment by a woman surnamed Jeong, who has close relations with YG officials.
The report added one of the female attendees was Hwang Ha-na, a granddaughter of the founder of Namyang Dairy Products who was imprisoned recently for use of methamphetamines.
After dinner, Yang booked a VIP room at the popular club NB, of which Yang is known to be the de facto owner, and the sexual favors allegedly took place there.
"A day before, there was a meeting with foreign investors at a Korean-style steakhouse and the investors picked the women of their choice. The following day, the women came to the dinner and performed sexual favors at the club," the witness said. "Some of the escorts even went abroad with the investors on their private jets."
YG has denied the sex-for-favors allegation, but did acknowledge Yang met up with the foreign investors.
"It is true Yang was at the restaurant and the club, but he was only there after receiving an invitation from an acquaintance," YG said. "The allegations are false. He knows Jeong, but we don't know why the women were there."
The allegations involving Yang are likely to deal another serious blow to YG, which has already been embroiled in sex and drug allegations involving its former star Seungri.
He has been under investigation for providing prostitutes to foreign investors for his own businesses and embezzling company funds. He was also a PR director for the nightclub Burning Sun, which closed down earlier this year amid allegations that its staffers drugged women and offered them to VIP guests for sex.
Soon after the report went viral, an online music community released a statement announcing a boycott of all music from YG.
"Since January starting with the Burning Sun scandal, there have been so many incidents involving celebrities involved in unethical acts. Along with those incidents, YG Entertainment has always been mentioned," the community said.
"While it is important for an entertainment agency to uphold social and ethical values, YG has been embroiled in numerous unethical acts and fans have lost trust in the agency. We concluded YG has failed to live up to its reputation as a leader in the global K-pop community. So from this day on, we will not purchase or listen to music made by the agency."
