Seungri's former business partner, Yuri Holdings CEO Yoo admitted to all charges regarding the Burning Sun Scandal.
During the first court hearing for the charges of embezzlement, solicitation of prostitution, violations of food business laws, violation offense of economic restrictions about the controversial Burning Sun club, CEO Yoo admitted to all the charges and promised to furnish the court with a detailed account of his involvement in the crimes.
According to a report by All Kpop, Yoo admitted his involvement in the Burning Sun scandal to aid the judge's sentencing decision.
It can be recalled that CEO Yoo, along with his former business partner Seungri handled the investment and monetary operations of Burning Sun through Yuri Holdings. At the height of the scandal, Yoo and Seungri were both charged and indicted for soliciting prostitution for potential investors from 2015 to 2016 and embezzling funds from the Burning Sun.
However, because Seungri is now enlisted for mandatory service, the former BIGBANG member will be tried in the military court instead of the regular court.
It can be recalled that Yoo and Seungri were accused of embezzling over 2 billion won in total throughout their business partnership. The Burning Sun controversy is one of the biggest scandals to happen in 2019, implicating the former BIGBANG maknae in allegations of soliciting prostitution and facilitating illegal business dealings, Billboard reported.
Apart from the Burning Sun scandal, Seungri was also charged with illegal gambling and foreign exchange and was called for a separate round of questioning by police.
In the wake of the scandal, Seungri retired from the entertainment industry last year to protect YG Entertainment and his BIGBANG members from the backlash of negative criticism. He maintained that he will face the charges head-on in the proper forum.
Despite his retirement, YG's stocks plummeted last year with even more scandals plaguing the agency with allegations of drug use and cover-ups which prompted the resignation of YG founder and CEO Yang Hyun Suk, Rolling Stone reported.
YG stocks normalized with the return of BIGBANG's remaining members G-Dragon, Taeyang, T.O.P and Daesung and lined up an eventful year for one of its top moneymakers BLACKPINK with their three-part comeback, culminating with their first full album in September. BLACKPINK solo releases are also lined up for the last quarter of the year after Jennie, Jisoo, Lisa, and Rose complete group promotions.
