Yang Hyun Suk, the founder and executive producer of YG Entertainment, will return to court in July for his third trial related to allegations of luxury watch smuggling.
The Busan District Prosecutors’ Office’s Public International Crime Investigation Division formally indicted the YG chief without detention on these charges back in September 2024.
Yang is accused of illegally bringing two high-end watches worth approximately 828 million won ($608,000) into South Korea through Incheon International Airport in September 2014 without declaring them to customs.
The Seoul Western District Court’s 11th Criminal Division (Na) has scheduled the next hearing for July 4. This marks Yang Hyun Suk’s first required court appearance in six months since January. The case falls under charges of violating the Aggravated Punishment Act for Specific Economic Crimes related to customs duties.
YG Entertainment has previously denied all these allegations, stating,
We deeply regret the prosecution’s hasty and excessive decision to indict right before the expiration of the 10-year statute of limitations. Back in 2017, Executive Producer Yang Hyun Suk fully cooperated with the investigation and, as a public figure who wished to avoid even minor controversies, voluntarily submitted all the sponsored watches to the investigating authorities. During the investigation, the statements of the head of the company in question frequently changed, yet the prosecution concluded that the sponsored items had been brought into the country without customs declaration and proceeded with the indictment without properly questioning the witnesses.
During the previous trial, the prosecution first addressed the charges, stating:
Yang Hyun Suk, before leaving for Singapore, requested on March 27–29, 2014, that he be given the watches he had previously asked for. After being told that the watches were ready, he departed for Singapore on September 12, 2014. On September 13, 2014, he received a watch worth 208,107,600 KRW as a gift and began wearing it at an investment agreement ceremony scheduled for that day. From September 13 to 15, 2014, he also received an additional black watch worth 33,168,712 KRW as a gift while staying in a suite room. Then, on September 16, 2014, he entered South Korea through Incheon International Airport with both watches, worth a total of 241,276,319 KRW, and smuggled them in by not declaring them to customs.
During the trial, prosecutors questioned Richard Mille’s Asia General Manager, who testified that the watch was shipped in September. On the other hand, Yang Hyun Suk’s legal team argued there’s no solid proof he personally carried the two luxury watches, worth about 241 million won combined, into Korea from Singapore. They claimed the watches were received and used in Korea for sponsorship and returned.
The defense pointed out there’s no evidence he possessed them at customs, the total value barely exceeded the 200 million won threshold for a customs charge, and the prosecution’s calculations were unclear. They also mentioned that the witness statements kept changing, the main witness was questioned years ago, and the indictment was rushed just before the 10-year statute of limitations ran out.
Meanwhile, under Article 241 of the Customs Act, anyone bringing goods into Korea must declare details such as the name, specifications, quantity, and value as defined by the Presidential Decree. Failing to do so can result in up to five years in prison or a fine worth ten times the customs duty or the goods’ value, whichever is higher. If the undeclared goods are worth between 200 million and 500 million won, stricter penalties also apply under the Act on the Aggravated Punishment of Specific Crimes.