On March 20, it was revealed that YG Entertainment is currently undergoing special tax evasion investigation by the NTS (National Tax Service). Around 100 investigators arrived at the agency headquarters to collect data related to tax filing.
Previously, the Yang brothers (Yang Hyun Suk and Yang Min Suk) were reported to be the owners of “Love Signal” a club that’s being suspected of tax evasion. However, this particular investigation is not about previous rumors.
In the report released on March 20, it was revealed that the investigation is covering a larger scope to extend toward other departments related to performances and marketing, the reason behind that was explained by MBC News program “Newsdesk” on March 21.
According to “Newsdesk,” YG Entertainment earned around 300 billion won (approx. $265 million) in sales every year since 2016 and this number includes revenue from overseas performances by their artists.
What YG Entertainment is under suspicion for is ‘underreporting their overseas earnings’ to the NTS. It is suspected that YG Entertainment reported those earnings as their artists’ individual income rather than earnings of the agency itself.
According to “Newsdesk,” the NIS is paying special attention to Yang Hyun Suk who is the founder of the agency (not the CEO, the CEO is currently his brother Yang Min Suk).
Special attention is being paid towards the founder because the NTS have found what appear to be abnormal stock transactions by him in terms of foreign investments.
They’re reportedly looking into the foreign investment capital Yang Hyun Suk personally talked about; they plan on investigating if the investors actually exist, where the investments came from and the nature of those investments.
Meanwhile, YG Entertainment stated they will fully cooperate with the investigation.
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Source: (A)
