An official probe has been launched some 50 days after the police started looking into former YG Entertainment chief Yang Hyun-suk. The media raised suspicion that he had arranged prostitution services, and the police plans to obtain evidence and promptly investigate the accusations.
Many upscale restaurants are clustered in this Sinsa-dong neighborhood in Seoul. But this bar located on the main street has been closed for about a month now. This is the workplace of the codenamed 'Madame Jung,' a key figure in the case of former YG Entertainment chief Yang Hyun-suk. He is suspected of arranging sexual services for his former company's potential foreign investors. Dating back to July 2014, Yang is accused of arranging a meeting with a wealthy investor, female escorts, including Madame Jung at a restaurant in Seoul. Notably, the former YG chief is suspected of procuring sex services to Jho Low, a wealthy investor from Southeast Asia. Madame Jung is also suspected of arranging overseas prositution. In October of the same year, at Yang's request, she allegedly boarded Jho Low's luxury yacht in France with other escorts and engaged in prostitution. The Korean police obtained Madame Jung's testimony that she had received euros worth 200 million won from Yang's close associate about a week before the departure. As the specific circumstances and the amount of money exchanged were revealed, the police launched an official investigation some 50 days after an internal probe began. Police booked Yang, Madame Jung, and two other bar employees for prostitution and mediation of sexual services. Going forward, they plan to obtain evidence through a search and seizure. YG Entertainment stated that the company has no comment and cannot substantiate anything in regards to the ongoing police investigation. As the news of Yang's investigation spread, the stock price of YG Entertainment plunged to the lowest level in the past year. YG Entertainment is going through th