BMW Korea distances itself from G-Dragon amid drug-use allegations

G-Dragon, left, passes photographers while attending a police investigation into his alleged drug use in Incheon, west of Seoul, Monday. Yonhap

BMW Korea appears to be concerned about its tainted brand image after its former brand ambassador, G-Dragon, became mired in an alleged drug-use scandal, according to industry officials, Tuesday.

The German automaker has in recent weeks carried out moves to erase prior traces of the K-pop star in its online promotional images and videos since the story started spreading last month.

However, the company is in a delicate situation following the K-pop star’s afternoon visit to a police station with his BMW i7 all-electric luxury vehicle.

BMK Korea said it decided to conceal the promotional images and videos, as it had to consider the “deteriorating public sentiment,” at the time, even if G-Dragon tested negative in an instant drug test on Monday.

“BMW Korea’s ambassador campaign with G-Dragon came to an end, but he still has a few months remaining on his advertisement contract with us until early next year,” a spokesman at BMW Korea said. “G-Dragon can drive the vehicle in public due to the contract. Regarding the online marketing content, we had no choice but to reflect on the public's sentiment. We cannot share our official stance, as the police investigation into G-Dragon is still ongoing.”

Even if BMW tried to keep a low profile regarding the scandal, G-Dragon exuded confidence while getting in and out of the BMW i7 xDrive60 vehicle overnight, in an apparent display of innocence regarding the suspicion of drug use.

Industry officials said BMW’s initial response was not unexpected, as any brand ambassador’s potential involvement in a scandalous incident immediately hurts the company's marketing.

“Most companies make similar moves under such circumstances,” an official from the auto industry here said. “There also stands a possibility that BMW may file a defamation suit against G-Dragon if he is convicted, as automakers typically include such terms in advertisement contract with celebrites.”

G-Dragon poses with BMW XM SUV as a brand ambassador for the model during its launch event in Seoul, March 28. Yonhap

Some other officials said G-Dragon’s appearance with the BMW vehicle can also be seen as part of the automaker’s noise marketing.

“Even if this is a rare case, some companies use such incidents as a chance for noise marketing,” another official from the industry said. “But most companies will not officially accept their involvement in such acts particularly when their model is facing an investigation.”

In March, BMW Korea chose G-Dragon as its official ambassador for the XM SUV. G-Dragon is known for his interest in high-end cars. He has been seen driving a number of other luxury vehicles from manufacturers such as Rolls-Royce and Lamborghini.