YG Founder Yang Hyun-Suk Faces Legal Woes and Stock Plunge

YG Entertainment’s founder Yang Hyun-Suk, faces the possibility of a three-year prison term. On Sept 27, Yang appeared in court to counter allegations of witness intimidation linked to B.I’s drug case.

B.I, a former member of the K-pop group iKON, was expelled from the group and YG Entertainment in 2019 after being accused of purchasing and using cannabis and LSD. The court sentenced him to four years of probation in September 2021.

B.I, a former member of the K-pop group iKON
K-pop group iKON dropped B.I following his drug scandal.

Prosecutors want a three-year sentence

Prosecutors, unimpressed by the previous trial’s leniency, have reiterated their call for a three-year sentence for Yang. They criticized the initial judgment for its lax interpretation of the law and for overlooking Yang’s alleged misconduct.

In a heartfelt final statement, Yang implored the court to allow him to resume his role as a pioneer in the K-pop industry. “Amid endless accusations over the past four years, I’ve silently hoped for the truth to surface. I now beseech the court to let me cultivate the next generation of K-Pop talents,” Yang stated.

YG Entertainment’s founder Yang Hyun-Suk

This plea comes at a turbulent juncture for YG Entertainment, already embroiled in controversies over BLACKPINK’s contract renewals. The label insists that they have made no decisions about the group’s future, despite rampant speculation about members departing.

The company stands on shaky financial ground. Its stock price has nosedived by 18.43% in the last four trading days, closing at 65,500 won as of September 25. Investor concerns about BLACKPINK’s contract renewals and potential solo projects from Jennie and Jisoo have exacerbated the decline. The stock price took another hit post YG Founder Yang Hyun-Suk’s court appearance, further eroding investor trust.

With Yang’s legal troubles casting a long shadow and the future of BLACKPINK in question, YG Entertainment faces a critical period ahead.

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