Founder of K-pop label YG resigns amid drugs and sex scandals

YG Plus

14/06/2019 10:44

SEOUL, June 14 (Reuters) - Yang Hyun-suk, founder of South
Korea's YG Entertainment  122870.KQ  which manages top K-pop
performers, stepped down on Friday from his duties as chief
producer, in the aftermath of drug and sex scandals involving
his artists. 
    In March, a member of YG's boyband Big Bang quit showbiz
over sex bribery accusations, prompting police investigations
and the resignation of four K-pop stars including him.
    Allegations subsequently surfaced of a network of pop stars,
businessmen and cops having colluded and enabled tax evasion,
bribery and prostitution, exposing the dark side of the glitzy
industry.  urn:newsml:reuters.com:*:nL3N21W0E4
    "I have waited out in patience this situation in which
shameless and humiliating words are being thoughtlessly spread
as if it is the truth," Yang, a former legendary K-pop star,
said in a statement. 
    "But I don’t think I can hold it in any longer."
    Yang said he was stepping down to avoid further damage to
the firm's artists over the accusations. These involved
prostitution mediation, tax evasion and cover-up of a drug
scandal, all of which he has denied.
    YG's top shareholder, Yang, founded the K-pop management
firm in 1996. His brother Yang Min-suk, the agency's chief
executive, also stepped down, according to a regulatory filing.
    On Wednesday, the leader of another one of YG's boy bands,
iKON, also exited show business over media reports that he was
attempting to buy illegal drugs. He publicly apologised for his
act and quit the band.
    YG Entertainment is one of the top K-Pop record labels
behind groups BlackPink and Big Bang, but its shares have
slumped for months, hit by the scandals. 
    Shares of YG Entertainment  122870.KQ  closed down 5.6% on
Friday, falling for a third consecutive session, while its
affiliate, YG Plus  037270.KS , lost nearly 6%.

 (Reporting by Sangmi Cha; Editing by Ju-min Park and Clarence
Fernandez)
 ((Sangmi.Cha@thomsonreuters.com;  +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))