Yang Hyun Suk, the influential executive producer of YG Entertainment, has found himself at the center of a luxury watch scandal.
The K-pop mogul has been brought to trial on charges of failing to report luxury watches worth 200 million won (approximately USD 150,000).
On September 11, the Busan District Prosecutors’ Office’s Public and International Crime Investigation Department formally charged Yang Hyun Suk for violating customs duty laws.
The indictment alleges that Yang received two high-end luxury watches from an overseas company in 2014. He failed to declare them separately upon bringing them into the country, to evade customs duties. He was indicted without detention.
Busan Customs began an investigation after discovering irregularities in watch imports. Two executive producers, including Yang Hyun Suk, were identified as suspects. YG Entertainment responded to the indictment, stating it was ‘unjustified’ and clarifying the watches were received as promotional sponsorships.
He cooperated fully during the investigation, voluntarily submitting the sponsored watches for examination. A spokesperson noted, ‘CEO Yang Hyun Suk participated actively in the investigation, providing all necessary information and evidence.’
YG Entertainment says it was simply a mistake due to a misunderstanding of how celebrity sponsorships work.