Following an investigation by the National Tax Service, it’s being reported that YG and YG Entertainment will be facing fines of over $5 million.
The National Tax Service conducted a special tax investigation on Yang Hyun Suk and YG Entertainment for approximately six months starting this March until late August. After wrapping up the investigations early this month, the National Tax Service decided to charge additional fees that total up to 6 billion won (approximately $5.1 million). The amount includes corporate taxes and income taxes.
But they were not fined for tax evasion suspicions.
Yang Hyun Suk and YG Entertainment were not fined for suspicions of tax evasion. It appears that the National Tax Agency did not find any clear evidence of tax evasion during the investigations.
So that’s just what they found of what was left after they had supposedly routine shredding of documents and wiping of servers. Not a big deal for a company the size of YGE, really. Just further evidence of shadiness.
Meanwhile, YGE is preparing to return LVMH’s ~$50+ million investment.
LVMH set the option of converting into common stock at 43,574 won (approximately $36.83) per share or a repayment of 67 billion won (approximately $56.6 million), which includes annual interest, after five years.
Financial industry representatives predict that LVMH will choose to receive the repayment of 67 billion won on the set five-year date of October 16, 2019.
We had previously taken a look at everything this entailed, though as the date gets closer it becomes more and more obviously that they’ll be paying this back.