When last we left the saga of Burning Sun-Gate, the police investigation turned toward YG Entertainment and its CEO and founder Yang Hyun-suk. At the time, police were concerned with (or at least what they told us) his connection to Burning Sun itself as he was one of the owners. Allegations of Yang providing prostitutes for business clients arose.
The police eventually received intelligence that Yang might have gambled overseas. Gambling is a big no-no in South Korea. It violates Chapter 23 of their Criminal Acts Law. This law applies to Korean citizens, even if they’re not on Korean soil. Authorities also believe that he used illegal means to exchange currency, thus breaking the Foreign Exchange Transaction law.
To make matters worse, Yang might have even embezzled money from the company to cover his losses. When I first read the news on this, I couldn’t help but think about some of YG’s past decisions. If the CEO was embezzling money but didn’t want people to notice, that could explain some past behaviors, such as two survival shows within four years when neither group has debuted.
Nonetheless, the police found enough information to upgrade their suspicion to a full investigation. In a recent press conference, the police agency announced that on August 17, KST, they had conducted a search and seizure at YG’s headquarters.
The statement didn’t reveal how detailed they were in their five-hour search. However, it did make clear that police secured data secured from the accounting department and Yang’s personal office. They also announced that Yang and Seungri are banned from leaving the country for the time being.
For those keeping track at home, Yang Hyun-suk is officially under investigation for the following
- Unregistered foreign exchange transactions
- Providing prostitutes for business clients and bribes
- Tax evasion
Currently, embezzlement isn’t an official case yet. If authorities should find any suspicious cash flow, they will handle it in another case. In the meantime, the police will comb through the data they have. Seungri has reportedly already admitted to some of the gambling charges. Yang himself has also gone in for questioning but no further news as of yet.
Tune in next time, where we’ll see what else gets swallowed up in the soaring flames of Burning Sun-Gate …