South Korean K-Pop company dives 14% amid alleged prostitution scandal
- YG Entertainment fell 14% following news that a member of one of its K-Pop groups, Big Bang, was charged in an alleged prostitution scandal.
- The boy-band member, Seungri, denied all charges and announced his retirement from show business.
- Rival South Korean entertainment companies SM and JYP also fell following the news.
YG Entertainment, a South Korean entertainment company, plunged more than 14% Monday following the news that a member of one of its K-Pop groups, Big Bang, has been implicated in an alleged prostitution scandal at Seoul nightclubs.
The performer, known by his stage name of Seungri, was charged with supplying prostitutes at a nightclub he controls, according to Variety. The singer denied all charges and immediately announced his retirement from show business.
"I think it would be good for me to retire from the entertainment industry at this point." Seungri said via Instagram. The former K-Pop star was slated to join the South Korean military this month as part of the country's mandatory military commitment, according to the news agency Yonhap. Speculation has risen that he could seek to defer his enlistment amid the growing scandal.
Big Band was formed by YG Entertainment in 2006 and became one of the all-time best-selling digital pop groups in Asia. Other South Korean entertainment groups such as SM and JYP also fell on the news.