Police question YG founder on overseas gambling allegations
Yang Hyun-suk, former CEO of YG Entertainment, is surrounded by reporters as he arrives at the Seoul Metropolitan Police Agency's sophisticated crime investigation division office in Seoul, Thursday, to be questioned over allegations of illegal overseas gambling and pimping. Korea Times photo by Shim Hyun-chul
By Kim Hyun-bin
Police summoned Yang Hyun-suk, the former head of YG Entertainment, Thursday, to question him over allegations of illegal overseas gambling and procuring prostitutes for foreign investors.
The summons comes a day after police questioned Seungri, a former member of K-pop boy band BIGBANG managed by YG. Seungri underwent over 12 hours of questioning on the same suspicions.
Yang appeared at the office of the Seoul Metropolitan Police Agency's sophisticated crime investigation division in the morning.
“I will fully cooperate with the police and answer all questions in detail,” Yang said.
Both Yang and Seungri were allegedly regular guests at VIP rooms at the MGM Grand Las Vegas Hotel and Casino, where they reportedly spent 1 billion won ($823,000) and 2 billion won, respectively, over the last five years. They are also suspected of having illegally secured funds for gambling in violation of the Foreign Exchange Transactions Act.
On Aug.17, police searched YG Entertainment offices to confiscate key evidence, and reportedly obtained financial documents from YG Entertainment's U.S. entity from U.S. authorities. Police have been analyzing the seized materials to see if Yang misused company funds for gambling.
The two have been banned from leaving the country.
In Wednesday's questioning, Seungri partially admitted to the gambling allegations but denied violating the foreign exchange law, according to police.
Police also interrogated Yang over his alleged hiring of prostitutes to serve his foreign investors in July 2014. They conducted the first round of interrogations on Yang's escort service allegations in late June. He was questioned as a witness at the time.
Besides those suspicions, Yang and his company have been at the center of allegations since early this year, including Yang's alleged tax evasion, cozy ties with police, attempts to cover up drug abuse suspicions about the agency's stars, including former iKON member B.I.
Amid the suspicions, Yang resigned as CEO of YG Entertainment in late June.