According to a report by NewsPim on the 3rd, Yang Hyun Suk has been ordered to take down an unauthorized extension of a building YG Entertainment owns in Seoul less than a year since he received another order to correct another unauthorized expansion.
According to a source from the Mago-gu office, Yang Hyun Suk built canopy roofs on two warehouse buildings 'A'without permission violating the Building Act. On top of the unauthorized roof extension, YG also had multiple unauthorized large outdoor air conditioners, tables, chairs and more in the building. This building 'A' also also houses two businesses 'Samgeori Pocha' and 'Samgeori Star Night' also owned by Yang Hyun Suk that include dance stages but are registered as general restaurants instead of clubs. Because of this structure, these businesses are suspected of tax evasion as 'general restaurants' are taxed at a lower rate compared to clubs.
According to the Mapo-gu office, this very same building has undergone multiple unauthorized extensions after being built in 2012 for an estimate of about 9 Building Act violations with no corrections. Yang Hyun Suk was fined 3 million won (~2,700) by prosecution in 2015 for these violations on Building 'A' as well as it's main YGE headquarters building in Hapjeong, Seoul.
An official from the Mapo District Office said, “After the order of voluntary demolition, we checked on site that the warehouse building was taken down and took a picture, so it is a violation of the Building Act if the warehouse is built again. Measures such as a corrective order on site will be taken.” The source, “It is difficult for the district office to crackdown [on violations] every time, and it seems as they have used the fact that it is easy to take down a non-permanent building to rebuild the warehouse. If Yang Hyun Suk does not follow through with the district office’s demolition or correction orders, he may be fined. The violations could also be reported to the police."
A source from the Police stated, "Besides Yang Hyun Suk’s suspicions of tax evasion, there is nothing else in particular that is being investigated as it is difficult to start an investigation on violations of the Building Act since there are corrective measures."
Since 2010, the Mapo District Office has sent demolition orders to YG Entertainment every year to no avail and he has been fined roughly 10-20 million won each year since then. A source from the Mapo office revealed, “The procedure can be carried out to forcefully demolish the unauthorized extension but there are currently no resources in operation to do so. As a result, the only possible measure at the moment is to issue the fine every year until the order is followed."
YG Entertainment has yet to offer an official statement on the allegations.
Source: Newspim