Here’s How YG Entertainment Is Connected To Club Burning Sun

They have “suspicious ties” yet YG denied any correlation.

YG Entertainment‘s subsidiary company reportedly merged with Yuri Holding‘s DJ label, Natural High Record (NHR) and supplied Club Burning Sun with DJs.

According to Hankook Ilbo, YG Entertainment is likely directly related to the “Burning Sun gate”.


YG Entertainment has been claiming that Yuri Holdings and Burning Sun was Seungri’s personal business and that it had nothing to do with the agency.

Yuri Holdings established NHR in October 2016. NHR was the second subsidiary company established by Yuri Holdings after BC Holdings (established in March 2016), which was suspected of being a paper company for money laundering.


YG Entertainment and Yuri Holding’s “suspicious ties” began in November 2017. The name of YG’s subsidiary company, HIGHGRND, was changed to YGX and merged with NHR.

YG will be directly/indirectly participating in and jointly managing YGX. We will support Seungri’s DJ business through the merge with NHR and target the global market using various methods including YG artists and NHR DJs.

ㅡ Yang Hyun Suk


After YGX and NHR’s merge, Seungri opened Club X in Mapo-gu, Seoul in December 2017. DJs managed under NHR consistently performed at Club X, which later changed its name to Love Signal, since February 2018. It has been revealed that Yang Hyun Suk is the actual owner of Love Signal and he was accused of tax evasion. The National Tax Service began a special tax investigation on YG on February 20 in relation to this issue.


NHR also supplied DJs to Burning Sun. The day after the launch date of the club, on February 24, NHR’s DJs even performed on stage with Seungri.

Burning Sun is the next project of my team members, who managed the luxury bar in Cheongdam-dong, Monkey Museum. NHR’s DJs are Club Burning Sun’s resident DJs.

ㅡ Seungri


Despite the fact that YG Entertainment, Yuri Holdings and Burning Sun were all connected through NHR, YG still emphasized their irrelevance to Seungri’s Scandal when it broke out. In fact, according to a corporate credit rating company, YG holds a 70% share of YGX and Seungri a 15% share. Moreover, Yang Hyun Suk shared an image of Seungri’s NHR business card on his Instagram last year and showed that he thought of him as a partner through hashtags.

A representative of YGX, however, stated that Seungri was not involved in the management of YGX and YGX did not participate in the management of NHR’s DJs.

After YGX’s establishment, it took over assets of NHR but we knew that NHR would shut down soon due to cumulative deficit. We did not know about its connection to Yuri Holdings. Seungri had nothing to do with the management and operation of YGX and YGX was not involved in the individual club activities of NHR’s DJs.

ㅡ YGX representative


Meanwhile, Burning Sun is currently being investigated by the police for drug distribution and police collusion.



Source: Hankook Ilbo

Burning Sun Scandal