Article:Why did Yang Hyun Suk entertain investors in Europe?..."YG's business depended on it"
Source: My Daily
MBC 'Straight' broadcast on the 23rd detailed new revelations about an investor trip to Europe planned by former YG Entertainment Chief Executive Yang Hyun Suk.
'Straight' alleged that Yang Hyun Suk arranged a trip to Europe in 2014 to entertain a Malaysian billionaire Taek Jho Low and invited 10 prostitutes from Madame Jung's establishment, a close friend of Yang Hyun Suk's. The prostitutes were each paid 10-20 million won and gifted luxurious goods as they traveled on Jho Low's private yacht and plane to southern France, Italy, and Monaco. According to a prior report by the program, Yang Hyun Suk had entertained this same investor a month before in July 2014 at a dinner party in a high-end restaurant in Seoul where YG had mobilized 10 prostitutes for the event as well. According to a witness on the broadcast, "Yang asked Madame Jung to do whatever the investors wanted."
So what was the reason for Yang Hyun Suk to entertain investors abroad? According to analysts, this is due to YG's venture into the restaurant business in preparation for Big Bang's military enlistment. YG needed to diversify its revenue portfolio from its main revenue source as Big Bang accounted for 80% of YG's performance revenues from its domestic and overseas concerts. As a result, YG's profitability index was directly linked with Big Bang activities. In order to diversify their revenue portfolio, YG planned a new venture into the restaurant business.
Kim Yoo, CEO of YGX, a YG subsidiary is said to have played a key role in dealing with the South-East Asia investors due to his excellent english speaking ability. These overseas investors were the ones who could influence YG's restaurant business.
