YG now facing suspicions of tax evasion & destruction of evidence

In addition to the allegations of providing prostitution, YG has reportedlybeen hit with suspicions of tax evasion and destruction of evidence.

On June 4, news outlet Kukinews reported that irregular transactions have occurred internally at Club NB, a club that is said to have ties with Yang Hyun Suk. Club NB opened up in Hongdae in 1999. Artists under YG Entertainment have performed at the club. This includes Yang Hyun Suk who performed as a DJ a few times. The club branched out to a second location in the neighborhood of Gangnam in 2004. According to official documents, Yang Hyun Suk is not listed as an owner at either of the locations. However, an anonymous source who has ties to Club NB has questioned this. The source stated, “Since the launch of the club, the club has been distributing a large sum of cash to Yang Hyun Suk upon settling the profits.” The source continued, “The popularity of the club at the beginning of the 2000s is incomparable to [the club’s popularity] now. The amount of cash that was delivered to Yang [Hyun Suk] in the past would have been huge.” Club NB in Gangnam was also mentioned in recent allegations of Yang Hyun Suk’s involvement in prostitution mediation. It is reported that Yang Hyun Suk attended a gathering with Southeast Asian businessmen and adult entertainment workers at Club NB in 2014.

These clubs were part of the National Tax Service investigation that was revealed back in March.

Perhaps more important is the allegation that YG was connected tot he destruction of evidence.

The anonymous source also raised questions about the possibility of Yang Hyun Suk destroying evidence ahead of being investigated by the National Tax Service. The source stated, “When KakaoTalk messages became key evidence in the investigations regarding the club Burning Sun, [Yang Hyun Suk] took action by asking the people who are related to the case to change their phones.” The source continued, “I also heard that [Yang Hyun Suk] created new sales ledgers to prepare for the tax audit.” Kukinews concluded that if the clubs are not owned by Yang Hyun Suk, the cash that was distributed to him is uncommon and that it could lead to suspicions of illegal connections between Yang Hyun Suk and the clubs. Even if Yang Hyun Suk is the owner of the clubs, the fact that he received his portion of the profits with cash raises questions of tax evasion.

The Club NB in Hongdae has confirmed that YG operates the the Club NB in Gangnam, but denies his ties to theirs and denies delivering cash to YG. The Gangnam club hasn’t commented yet.

A source from Club NB in Hongdae stated, “It is true that Yang Hyun Suk operates Club NB in Gangnam. However, Club NB in Hongdae is not in any way related to that.” The source also denied allegations of delivering cash to Yang Hyun Suk. Club NB in Gangnam has yet to respond.

It’s a bit interesting how one club threw the other club under the bus, confirming at least part of the source’s story. Granted that doesn’t mean the rest of it is true, but it’s certainly something worth monitoring going forward and matches what’s already been suspected previously.

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