As reported earlier, a club known as ‘Love Signal’ is currently suspected of tax evasion as news reports released on March 6th claim that the establishment is registered as a restaurant instead of an entertainment establishment, much like BIGBANG member SeungRi’s clube ‘Monkey Museum’.
YG Entertainment CEO Yang HyunSuk was revealed to be the owner of ‘Love Signal’. ‘Love Signal’, located in the Mapo-gu district, is under a law that allows customers to be able to dance only in their seats, and it is likely the law was created in order to differentiate establishments from night clubs and to also prevent too many night clubs from being established. However, despite being registered as a restaurant, ‘Love Signal’ has a stage where customers can dance on, which is the reason why many people are suspecting tax evasion,
But it seems that the K-Pop agency CEO has more than just ‘Love Signal’ under his belt. Several other clubs including Gabbia, Moon Night, Samgeori Byulbam, NB1, and NB2 have been reported to be registered under the same investment company where Yang HyunSuk owns 70% of shares while his younger brother Yang MinSuk owns the remaining 30%. Moreover, it has also been reported that Yang HyunSuk is also the owner of the buildings that facilitate the clubs.
So besides beginning to get an idea of just how rich Yang HyunSuk really is, we have to wonder just how these clubs were able to be registered as ‘general restaurant’, when they were known to be venues where young people go to dance and party like any other clubs out there. Venues registered as ‘general restaurant’ pay 10% of profit in taxes whereas ‘entertainment establishments’ pay 13% in taxes.
This has caused people to suspect that Yang HyunSuk is guilty of tax evasion.
When news agencies contacted the Magpo-gu district to get some answers, the answer was:
“We have nothing to say regarding the matter.”
In addition, the Mapo-gu district has also stated that they would only take administrative measures if they actually caught the venues in violation of regulations meaning, they would have to make an official visit and inspect the venues and personally see people dancing out of their seats and on a stage or dance floor first. They also did mention that if they did not see anyone dancing out of their seats during inspection, there would be no reason for them to take any action.
Stay tuned for updates!