By Dong Sun-hwa, Lee Gyu-lee, Park Si-soo
YG Entertainment is under siege on all fronts. South Korea’s second-biggest K-pop label has seen its image ruined by the drugs and prostitution scandal involving disgraced star Seungri, and the fallout is likely to hurt other YG artists such as Blackpink, Winner and iKon.
A recent sell-off by investors is a visible indication that YG is in serious trouble. More than 220 billion won (US$193 million) of YG capital has evaporated since the scandal started nearly a month ago.
The drama has also ensnared Yang Hyun-suk, the label’s founder and biggest shareholder. South Korea’s National Tax Service is looking into financial transactions by the showbiz mogul and his family amid suspicions that they illegally avoided paying taxes. The founder’s policy of not interfering with YG artists has also come under fire.
How far will the scandal reach? Given the complex system of interconnected stars and companies, it is likely to extend beyond the entertainment industry.
A ranking police officer was recently questioned over his alleged cosy ties with Seungri and other celebrities linked to the scandal. South Korean President Moon Jae-in recently ordered a thorough investigation of all parties involved.
The scandal started when a customer accused the managers of Seoul’s Burning Sun nightclub of attacking him last November. Allegations then surfaced that club staff had drugged female customers with gamma-hydroxybutyrate (GHB), known as a “date rape drug”. Seungri, a member of YG hit-making boy band BigBang, served as an executive director of the club.
As the noose around YG gets tighter, the agency has boosted its defences. Staff have kept their mouths shut and senior executives have been choosing their words carefully.
Last Friday, YG chief executive Yang Min-suk spoke for the first time since the scandal broke. Yang, a younger brother of the YG founder, said he took the case “very seriously” and promised to cooperate with the investigation. But he refused to comment on the allegations against YG and his elder brother.
The Korea Times asked several YG insiders about the internal situation – but none would speak out. “I do not know what exactly is going on, but even if I did, I could not reveal anything,” a YG official said.
Industry insiders are also not sure about the situation inside YG. “What’s happening there is beyond my reach,” a music critic said.
He said industry insiders such as himself were “very much concerned about what’s happening” at the company, as the scandal could have a negative impact on the entire K-pop industry.
Another critic said the damage to YG was “deep and wide”, adding it would take a “long time and lots of effort” for the company to restore its tarnished image. “It’s not just a company issue,” the critic said. “The negative impact could affect other innocent YG artists and literally ruin the firm’s blueprint for the future. At least for now, the comeback plans of other YG artists, including BigBang, remain bleak.”
Seungri announced his departure from BigBang and his retirement from the entertainment industry on March 11 to take responsibility for the scandal. The next day YG arbitrarily terminated its contract with Seungri, the toughest punishment it could impose.
But its actions were criticised as too light for some K-pop followers, who felt upset and “betrayed” by the singer’s activities.
“I’m beyond disappointed in him and anyone else who was involved,” one fan wrote on Instagram. “I no longer have any trust or love for Seungri and he deserves what’s coming to him.”
Another commented: “As a fan for 10 years, I feel ashamed to say I have been a supporter.” And another fan wrote on Yang’s Instagram: “I knew something like this would happen one day. It’s actually surprising that YG is still in business.”
On Twitter, some fans are calling for a boycott of YG and its artists, while others said they had thrown away albums and products released by the company.
Read the full story at the Korea Times.
