Yang Hyun-suk, head of South Korean entertainment powerhouse YG Entertainment, procured sexual services for foreign investors, according to a preview video released by a local investigative TV program. The program, called Straight, aired late on Monday (May 27) on one of South Korea's leading broadcasters Munhwa Broadcasting Corporation (MBC).
It was claimed that Straight reporters had obtained testimony that in July 2014, Yang Hyun Suk provided sexual services for two wealthy Southeast Asians at a high-end restaurant in Gangnam. It was said that there were eight men and 25 women present. At least 10 of these women were from the red-light district, brought by the madam of a famous adult entertainment establishment in Gangnam who has close ties to YG. Also in attendance was a singer affiliated with YG.
After dinner, they moved to a club called NB, where Yang is a de facto owner, and sexual services were provided there, the video suggested.
YG Entertainment flatly denied the allegations. But on the May 28th broadcast of MBC Radio's Shim In Bo's Focus, reporter Go, who initially broke the allegations against Yang Hyun Suk, revealed more details.
"The investors' parties picked a few from the group of 25 women, and they headed over to the dorms and other places,” he stated. “In the end, the investors even used personal planes to head to Europe with the women. At the dinner, the women who were chosen received Chanel bags worth 4-5 million Won (US$3,364.94-4,206.18) personally from the investors, and they said thank you."
Reporter Go also revealed details on Hwang Hana's involvement in the prostitution dealings.
"Hwang was an important person. The person called Madame Jung was also deeply involved with Yang Hyun Suk, Seungri, and other insiders at YG, he said. “The madame runs a karaoke business, and she managed and added the women. She's said to have a lot of strong ties in the government and financial world. At the time, the investors were all from abroad. That's why they needed someone who could translate English and naturally get along with everyone. That's why Hwang Hana was invited."
YG Entertainment said the claims are false. ”Although Yang Hyun-suk was there at the invitation of his acquaintance, there were no solicitations of any form," it said in a statement.
In Monday night's episode, Straight aired an interview with a woman who claimed that a Thai man raped her. The man, who was accompanied by an executive of a YG subsidiary YGX, raped the woman at the club Burning Sun owned by former Big Bang member Seungri and had been investigated for the allegation, according to the TV show.
The police dropped the rape investigation. They have assured that the case will be investigated to determine the facts, if necessary.