YG Entertainment founder Yang Hyun Suk has been booked by police on suspicion of mediating prostitution services.
It was reported that police have booked Yang Hyun Suk as a suspect and are starting an internal investigation. He is suspected of mediating prostitution services for foreign investors in September 2014 and sending women to Europe with foreign investors in October 2014.
In a nine-hour investigation on June 26, Yang Hyun Suk stated he'd only attended a September 2014 gathering to meet a producer. He denied being involved in mediating prostitution.
According to a report from Korean news outlet MBN, police identified the charges and booked four people including Yang Hyun Suk, a person who worked at the adult entertainment company, as well as one of the foreign investors and a woman who worked for the adult entertainment company.
It's believed that police found evidence of sexual service payment transactions while looking into the expense reports of Yang Hyun Suk and a YG staff member present at the September 2014 gathering.
Meanwhile, YG Entertainment stocks have hit a 52-week low, following a year of controversy for the agency that has seen BIGBANG's Seungri retire, Yang Hyun Suk and his brother resign from their roles, and iKON's B.I leave the agency.
Hear us on SBS PopAsia Digital Radio
Listen in 24/7 on Digital Radio, by downloading our free mobile app or by streaming live here on our website.
Download the app here: