It was previously reported that Seungri‘s club that was allegedly evading taxes illegally was actually owned by YG Entertainment‘s Yang Hyun Suk.
It has now been revealed that Yang Hyun Suk owns multiple clubs that are allegedly evading taxes as well. According to Kuki News, the clubs are registered under Corporation A, which is owned by Yang Hyun Suk (70%) and his brother Yang Min Seok (30%).
In addition to Love Signal, the club that Seungri had promoted, Corporation A also apparently owns 3 other clubs including Gabbia, Moon Night and Samgeori Byulbam.
In fact, the building of Gabbia and Samgeori Byulbam is owned by Yang Hyun Suk himself.
It turns out that all three of these clubs were registered under “general restaurant” as was the case for Love Signal. Mapo-gu has enacted an ordinance that allows general restaurants to allow customers to dance at their seats and it looks like Yang Hyun Suk was utilizing this ordinance for all of his clubs.
Kuki News claims that Moon Night goes against the regulations as there is a platform that looks like a stage as well as a DJ booth.
Samgeori Byulbam also had a structure that could be seen as a stage. Gabbia did not have a stage, but there was a space for customers to dance. Even though there is no stage, this could be a violation of the ordinance, which states that customers must only dance at their seats.
The clubs that are referred to as NB1 and NB2 (Noise Basement) were the most problematic. According to Kuki News, there was a stage as well as space for DJs to play music on the second floor of the club. Customers generally danced on the stage surrounding this space or next to the stage. It was a violation of the ordinance.
The managers of NB have been put on probation and fined even before Mapo-gu’s “general restaurant” ordinance for being an unauthorized adult entertainment establishment. Because the Hongdae area is a residential area, adult entertainment establishments are not allowed in the first place. However, the clubs such as NB have opened after reporting the business as a “general restaurant”.
Businesses categorized under “general restaurants” pay a 10% tax whereas businesses categorized under “adult entertainment establishment” pay an additional 13% tax.
An affiliate of the Mapo-gu Office explained that administrative measure would have been taken if violations were discovered during the inspection of general restaurants but that if there were no people dancing on the stage at the time of the inspection, it was difficult to clamp down on it. Moreover, the person said, “I have nothing to say about that,” and hung up when asked about the violations of the clubs in question.