The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Wed, August 10, 2022 | 02:40
Music
YG in perfect storm
Posted : 2019-03-26 09:28
Updated : 2019-03-26 10:48
Print Preview
Font Size Up
Font Size Down
The drug/prostitution scandal involving former YG artist Seungri, top, has spiraled out of control, striking YG Entertainment and its founder, Yang Hyun-suk. Photos from Yonhap, Hankook Ilbo, YG Entertainment
The drug/prostitution scandal involving former YG artist Seungri, top, has spiraled out of control, striking YG Entertainment and its founder, Yang Hyun-suk. Photos from Yonhap, Hankook Ilbo, YG Entertainment

This is the first in a two-part series about YG Entertainment's uphill battle with a drug/prostitution scandal involving disgraced K-pop star Seungri. ― ED

By Dong Sun-hwa, Lee Gyu-lee, Park Si-soo

YG Entertainment is under siege on all fronts.

The nation's second-biggest K-pop label has seen its image tossed into the mire as the drug/prostitution scandal involving disgraced Seungri has spiraled out of control. The unsavory brouhaha has given YG fans an excuse to turn away; and the fallout is likely to hurt other "innocent" YG artists such as BLACKPINK, WINNER and iKON ― and possibly pre-debut trainees.

A recent sell-off by investors is a visible indication that YG is in serious trouble that may not abate for some time. More than 220 billion won ($193 million) of capital has evaporated since the scandal hit the headlines nearly a month ago.

The scandal has also struck Yang Hyun-suk, the label's founder and biggest shareholder. The National Tax Service is looking into financial transactions involving the showbiz mogul and his family on suspicions that they have evaded a huge amount of taxes by employing illegal business tactics. YG denies this, but the authorities say they have hard evidence secured while looking into the Seungri case.

The founder's policy of not interfering with YG's artists is another target of criticism.

How far will this scandal reach? Given the complex picture of inter-connected people and entities, it is likely to extend beyond the entertainment industry.

A ranking police officer was recently questioned over alleged "cozy ties" with Seungri and other celebrities linked to the scandal.

President Moon Jae-in recently ordered a thorough investigation into it and all parties involved.

YG keeps silent in self-defense

The drug/prostitution scandal involving former YG artist Seungri, top, has spiraled out of control, striking YG Entertainment and its founder, Yang Hyun-suk. Photos from Yonhap, Hankook Ilbo, YG Entertainment
YG Entertainment has isolated itself from the public amid the ongoing scandal. Korea Times photo by Shim Hyun-chul
As the noose around YG gets tighter, the agency has boosted its defense. Staff members have kept their mouths shut and senior executives say only carefully selected ― or calculated ― words.

YG faces ruthless 'test for survival'
YG faces ruthless 'test for survival'
2019-03-27 09:25  |  K-pop

Last Friday, chief executive Yang Min-suk spoke to reporters in his first public appearance since the scandal broke. Yang, a younger brother of the scandal-hit YG founder, said he took the case "very seriously" and promised to "faithfully cooperate" with the investigation. But he shied away from commenting on allegations against YG and his elder brother.

The Korea Times contacted several YG insiders to get a picture of the internal situation ― but nobody was willing to speak out.

"I do not know what exactly is going on, but even if I did, I could not reveal anything to outsiders," a YG official said. He refused to say more.

YG's spokesman did not reply to several phone calls about the situation.

It seems that industry insiders also have limited access to YG's internal situation.

"What's happening inside the company at the moment is beyond my reach," a music critic said.

He said music industry insiders, including himself, were "very much concerned about what's happening at YG" because it could have a negative impact on the entire K-pop industry.

Another critic said the damage to YG was "deep and wide," adding that it would take "long time and lots of effort" for the company to restore its tarnished image.

"It's not just a company issue," the critic said. "The negative impact could reach other innocent YG artists and literally ruin the firm's blueprint for the future.

"At least for now, comeback plans of other YG artists including BIGBANG, remain bleak."

The drug/prostitution scandal involving former YG artist Seungri, top, has spiraled out of control, striking YG Entertainment and its founder, Yang Hyun-suk. Photos from Yonhap, Hankook Ilbo, YG Entertainment
Seungri declared his departure from BIGBANG and retirement from the entertainment industry on March 11 to take responsibility for the scandal. Screen capture from Seungri's Instagram

Fans disappointed

Seungri, 29, declared his departure from BIGBANG and retirement from the entertainment industry on March 11 to take responsibility for the scandal. The following day YG arbitrarily terminated its contract with Seungri, the toughest punishment it could impose.

But these measures fell short of consoling people who felt upset and "betrayed" by the singer's activities.

"I'm beyond disappointed in him and anyone else who was involved," a fan wrote on Instagram. "I no longer have any trust or love toward Seungri and he deserves what's coming to him."

A netizen commented, "As a fan for 10 years, I feel ashamed to say I have been a supporter."

An online user wrote on Yang's Instagram. "I knew something like this would happen one day. It's actually surprising that YG is still in business."

Some called on Twitter for a boycott of YG and its artists, while others said they had disposed of albums and products.



Emailsunhwadong@koreatimes.co.kr Article ListMore articles by this reporter
Emailgyulee@koreatimes.co.kr Article ListMore articles by this reporter
Emailpss@koreatimes.co.kr Article ListMore articles by this reporter
 
LG
  • Capital region to see additional 300 millimeters of rain until Friday
  • [PHOTOS] Damage after torrential rains
  • Visa regulation pits Jeju islanders against justice ministry
  • Canadian YouTuber takes viewers on brewing adventures in Korea
  • Yoon details whereabouts during record downpour to curb conspiracy theory
  • Heavy downpour disrupts e-commerce deliveries
  • Former Starbucks Korea CEO leads growth of Shinsegae brand JAJU
  • North Korea releases water from border dam after downpours
  • Ex-President Lee Myung-bak unlikely to be released
  • Coupang aims to strengthen profitability through financial biz
  • Interactive News
  • With tough love,
  • 'Santa dogs' help rebuild burnt forests in Andong
  • 'Santa dogs' help rebuild burnt forests in Andong
  • A tale of natural wine
    • Netflix's 'Narco-Saints' to be released Sept. 9 Netflix's 'Narco-Saints' to be released Sept. 9
    • [INTERVIEW] Leandro Erlich's questioning of our perception of reality carries new meaning in pandemic [INTERVIEW] Leandro Erlich's questioning of our perception of reality carries new meaning in pandemic
    • BLACKPINK to start world tour in October BLACKPINK to start world tour in October
    • [INTERVIEW] Im Si-wan found own narrative for villain role in 'Emergency Declaration' [INTERVIEW] Im Si-wan found own narrative for villain role in 'Emergency Declaration'
    • 'Free Chol Soo Lee': How young Korean immigrant's wrongful conviction led to pan-Asian American resistance movement 'Free Chol Soo Lee': How young Korean immigrant's wrongful conviction led to pan-Asian American resistance movement
    DARKROOM
    • Ice is melting, land is burning

      Ice is melting, land is burning

    • Tottenham 6-3 Team K League

      Tottenham 6-3 Team K League

    • Afghanistan earthquake killed more than 1,000

      Afghanistan earthquake killed more than 1,000

    • Divided America reacts to overturn of Roe vs. Wade

      Divided America reacts to overturn of Roe vs. Wade

    • Namaste: Yogis to celebrate International Yoga Day

      Namaste: Yogis to celebrate International Yoga Day

    The Korea Times
    CEO & Publisher : Oh Young-jin
    Digital News Email : webmaster@koreatimes.co.kr
    Tel : 02-724-2114
    Online newspaper registration No : 서울,아52844
    Date of registration : 2020.02.05
    Masthead : The Korea Times
    Copyright © koreatimes.co.kr. All rights reserved.
    • About Us
    • Introduction
    • History
    • Location
    • Media Kit
    • Contact Us
    • Products & Service
    • Subscribe
    • E-paper
    • Mobile Service
    • RSS Service
    • Content Sales
    • Policy
    • Privacy Statement
    • Terms of Service
    • 고충처리인
    • Youth Protection Policy
    • Code of Ethics
    • Copyright Policy
    • Family Site
    • Hankook Ilbo
    • Dongwha Group