Yang Hyun Suk was officially booked on suspicion of arranging prostitutions services.
By Anna Kim
The entertainment mogul and producer is suspected of arranging sexual services for his foreign investors in September of 2014. It is also reported that Yang Hyun Seok sent women from an adult entertainment establishment to Europe in October that year to accompany them.
After 9 hours of being questioned by the police, Yang Hyun Suk denied all the suspicions laid upon himself and stated that he had only been at the gathering to meet a famous producer. However, the police went through the expenses that Yang and his staff members from the gathering event had spent and finally found evidences of what appeared to be sexual services. Even some of the women who accompanied Yang’s investors during the Europe trip acknowledged the suspicions.
A Korean news broadcast in Korea revealed an interview with Madam Jung on July 8th, 2019, which was a final blow to make the suspicions turn obvious. Madam Jung stated, “The mediation of prostitution in Europe in 2014 was a request from YG Entertainment. On the way to Europe, I took a phone call from Yang’s side. Photos of 10 girls were sent to Yang’s friend, who delivered approximately $170,000 to her. According to Madam Jung, Yang personally gave directions on how the money should be divided up and told her that each of the girls should be given approximately $8500 and the remaining half would go to herself.
Why did she agree to the interview with the Korean broadcast? Jung said, “YG’s side has changed their testimony and I just did as I was told by YG. I don’t have the caliber to muster a slew of powerful figures in one place. YG’s side claimed that they didn’t know why I had brought the girls during a cross-examination. However, Yang exactly knows why I took the money since he ordered it and I went to Europe as he told me to. That’s the truth.”
Yang was in a bind and stepped down from his position as a CEO of YG Entertainment last June as the aftermath increased.
Prostitution suspicion was not the only allegation laid upon Yang. The United States’ Federal Bureau of Investigation (FBI) is reported to have helped Korean police obtain evidence against Yang for illegal overseas gambling. It is said that Seungri was with him during the trip to Las Vegas, Nevada. One rep from a casino confirmed that the FBI has gotten involved in Yang’s entrance into a casino as Korean police requested it. Yang is said to have bet over $827,155 and lost around $496,332 while Seungri bet approximately $1,654,000 and lost about approximately $1,075,700 mainly playing Baccarat.
A source who engaged in gambling in the same casino stated, “Mr. Yang could borrow any amount from the casino on credit even when he didn’t have cash. As far as I know, he usually exchanged by hand. Someone from Yang’s side personally delivers the money to the illicit money exchange dealer.”
Similarly to the Las Vegas case, Yang Hyun Suk reportedly engaged in gambling in VIP rooms at the MGM Hotel in Macau. According to the police, the amount of funds spent in illegal gambling in Macau was far greater than the amount spent in the U.S.A because it was relatively easier to move money between Macau and South Korea. In South Korea, gambling overseas is subject to be punished even if the act is considered legal by local laws.
On July 18 at 10:30a.m. KST on KOSDAQ, YG Entertainment’s stocks were priced at about $22.68, which is a 3.09 percent drop from the previous day. This result has a bearing on Yang’s confinement. As the YG Entertainment is in a hot seat, its fate is under water.