According to Newspim.com, there has been growing suspicions that YG Entertainment founder and producer Yang HyunSuk received billions of won in loan by Shinhan Bank under circumstances that wouldn’t have been possible for other citizens of South Korea.
Shinhan Bank gave out a total of three loans to Yang HyunSuk beginning in August 2010, when he was first granted 4,680,000,000 KRW ($4 million). The second loan was granted in March 2011, amounting to 1,950,000,000 KRW ($1.7 million), and this third loan was granted in June 2011, amounting to 3,510,000,000 KRW ($3 million). In total, Yang HyunSuk was able to receive a loan of nearly $10 million.
According to Newspim.com, Yang HyunSuk used both the YG Entertainment building and the land that it was built on as collateral, meaning that the bank would have been able to seize the YG building and the land beneath it if Yang HyunSuk was unable to pay the loans back.
But of course, Yang HyunSuk was able to pay the loan back to the bank in time, and he also sold the ownership of the YG building to YG Entertainment in December 2017 for around $10 million.
What is problematic about Yang HyunSuk’s financial activities with the bank is that the YG Building was actually a building that was in violation of architecture laws in South Korea. A financial expert pointed out that banks do not give out loans and accept buildings that are in violation as collateral, as the value of the building decreases significantly.
There has been growing suspicions that Yang HyunSuk was able to receive the loans because of who he is, rather than having met the criteria of the bank’s official requirements when filing for a loan.
This recent news also doesn’t help his bad publicity regarding the additional suspicions involving tax evasion, as several of the clubs owned by him are registered as general restaurant and not as an entertainment establishment. Venues registered under general restaurants pay less percentages of profit in taxes than entertainment establishments.
Stay tuned for updates!