YG CEO and Yang Min-suk's aide and executives embroiled in employee stock fraud scheme following 'Burning Sun' audit
Source: SBS
YG CEO Hwang, Yang Min Suk's aide and executives are embroiled in allegations of stock fraud.
According to an exclusive SBS report, YG Entertainment that led the spread of K-pop by producing many famous idol groups committed stock fraud through employee stock ownership.
At the time of YG's listing in KOSDAQ in 2011, the agency raised over 3.6 trillion won from the first day of the IPO that more than doubled in the following year. Prior to the listing, about 210,000 stock shares were allocated to employees and the National Tax Service confirmed that an executive and outsiders of the company made a profit by acquiring employee stock shares under a second name.
Hwang, the Finance Director at the time, acquired stocks under the name of manager Kim Mo, a subordinate, and asked her husband and friends to send stock purchase funds to Mr. Kim to hide the name of the true beneficiary. There was also an understanding that the profits from the stock sales were left in Kim's account and used for construction costs and living expenses. Hwang is now the current CEO of YG and Mr. Kim is now the current Director of Finance.
At the time, Mr. Kim was the auditor in charge of monitoring the employee stock ownership program and there were 3 YG employees who owned stocks in the company after a loan transaction request. Two of the employees were told of the possibility of making profits if they took advantage of the investment attraction of YG at the time of listing.
Mr. A, an aide to former YG CEO Yang Min-suk also received stocks in the name of Mr. Ha, an employee, and the stock payment was deposited through Ha's account.
The employee stock fraud scheme was almost buried until the National Tax Service opened a tax audit into YG Entertainment following 'Burning Sun' incident that began in 2019.
Reporters visited YG's headquarters for explanations from current CEO Hwang and Director Kim but did not receive any response when they tried to contact them.
YG is said to have called tax authorities and stated, "The company had to inevitably enter into loan transactions with employees as the demand for employee stock ownership before the listing was low disrupting funding. It wasn't to evade taxes."
The IRS reportedly did not accept YG's claims.
- Yang Hyun Suk and all the executives need to get investigated and jailed! Who is taking care of them from the back??? The entirety of YG is a criminal pharmacy enterprise.
- Drugs, prostitution, illegal stock frauds using second-name accounts...what is the real YG and who is behind them????
- What happened to the senior officer who worked in the Civil Affairs office aka “police chief” in group katalks?? He was even photographed with the former police chief?
- They conducted a tax audit in 2019 but the news is just coming out now..? And the Finance Director at the time who's now the current YG CEO was involved...? Why is there no information of her getting jailed or fined..?
- Ah~ YG is a total s*** hole gambling drug ring..
- YG isn't a true agency but a rotten pharmacy. That's why even if management changes nothing is going to change because its a yangachi company run by dirty rotten thugs..
- And when will Burning Sun investigations come to an end anyway!!!! That's what everyone is curious to know.
- This should've been properly investigated when Burning Sun came out. There are no documents left now since YG brought those shredding trucks at dawn.
- Yang Hyun Suk is seriously trash!
- Investigate Burning Sun again!!!! Why is Seungri not arrested yet!!!?
