YG owned restaurant "Samgeori Butchers" in Myeong-dong has closed down after 3 years.
An industry official stated on the 20th, "YG Republique's Myeong-dong branch in Jung-gu Seoul was closed down on the 8th. Among all brands, the Myeong-dong branch was unique because it had a large meat shop 'Samgeori Butchers', a pub K-Pub, and coffee shop '3 Birds' but it has been closed down after 3 years of operations after it was opened in April 2016."
The Myeong-dong branch was frequented by Japanese and Chinese tourists due to its location but recent prostitution controversy involving former executive Yang Hyun Suk and 'Burning Sun gate' involving former Big Bang member Seungri has caused a hit to the brands image.
According to the Financial Supervisory Service's electronic disclosure system, YG Foods ran a deficit of 3.2 billion won in the first half of the year. Seungri's 'Aori Ramen' restaurants are also under boycott and the franchise reported that sales of affiliated stores fell sharply to less than half after 'Burning Sun gate'. Currently, 26 owners are also suing Seungri for the franchise losses.
The industry official stated, "It appears that YG decided to closed down its Myeong-dong branch due to a sharp drop in tourist visits due to recent agency controversies as well as THAAD and economic retaliations between Japan-Korea. With commercial rents in the area rising drastically and the declining sales, YG decided to close down the branch."
An official from YG Foods stated, "We closed down the Myeong-dong store because we have other business investment plans. We plan to open a new YG Republique this year in Busan, not Seoul."
In the meantime, there are 3 YG Republique restaurants currently in operation in Yeouido, Jeju Shinhwa and Central City. There are overseas branches in Bangkok, Thailand, and Kuala Lumpur, Malaysia.
