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Sin industry proves 'slump-proof'

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  • Published Oct 3, 2012 6:30 pm KST
  • Updated Oct 3, 2012 6:30 pm KST

Room salons thrive on police links, legal loopholes

By Na Jeong-ju

The number of hostess bars, karaoke rooms and clubs has increased during the past few years despite a sluggish economy, according to a parliamentary report released Monday.

The report suggests that the so-called sin industry has flourished while consumers have tightened their belts since the 2008 financial crisis.

The number of stores registered as “amusement and entertainment business,” including room salons (hostess bars), cabarets, karaoke rooms, pubs and Internet cafes, totaled 192,108 as of September, up 6.3 percent from 187,751 two years earlier.

The number of room salons hit an all-time high of 32,790, up 4.8 percent from 2010, while karaokes that are allowed to sell alcoholic beverages increased by 4.3 percent to 18,789 during the same period.

The number of such amusement venues that have been found to have engaged in irregularities more than once during the past two years totaled some 67,000, the report said.

The report is based on data collected by the National Police Agency (NPA). The agency recently submitted the report to Rep. Kim Hyun of the Democratic United Party, a member of the National Assembly’s Public Administration and Security Committee.

“The increase in the number of room salons and karaokes, many of which peddle prostitution, indicates that such places have been getting more customers despite an economic slump and repeated crackdowns,” the lawmaker said in a press release.

Critics say room salons have thrived using their ties to corrupt police officers and create legal loopholes. The NPA has changed officers who inspect such stores once a year and toughened punishments for officers who take bribes.

Most recently, the owner of the nation’s largest room salon YTT was indicted last month for evading payment of billions of won in tax. The owner, nicknamed “room salon king,” reportedly arranged some 88,000 sexual liaisons between customers and hostesses for about two years from July 2010. Dozens of officers in southern Seoul are under investigation for taking bribes from the owner, surnamed Kim, in return for their “protection.”

The report showed many karaoke rooms have hired hostesses in violation of laws to treat customers. More than 5,600 karaoke rooms were punished from 2010 to 2012 for engaging in prostitution, it said.