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Dispatch releases exclusive report about potential YG connection with president scandal

By alice101   Friday, November 4, 2016   137,247   5,681   226
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Dispatch reported further evidence that seems to suggest a possible connection between the President scandal and YG Entertainment, through their November 4 exclusive report. The accusation is that the political powers favored YG Entertainment and doled out unfair (and even illegal) benefits for YG Entertainment. 




According to the report, YG Entertainment's CEO, Yang Min Suk, is an active part of President Park's Culture Fusion Project. In July 2013, he was active as a member of the presidential 'Culture Prosperity Committee.' In June of the same year, Yang was also a part of a 71 person delegation team that visited China with President Park to discuss Korea-China economic relationship. Yang was the only entertainment-related person in the delegation; all the other delegates were economic experts.


In March 2014, YG Entertainment launched 'MUJU YG', a non-profit organization to help the youths in need. Who signed the cooperation agreement in 2015? The Ministry of Culture, Sports, and Tourism (Secretary Kim Jong Duk) and Ewha University (President Choi Kyun Hee). 


In January of 2016, YG Entertainment worked with the Ministry of Culture, Sports, and Tourism, Hallyu Planning Group, MBC Nanum to hold 'Global Y Generation Movement' project in Indonesia. It was a volunteer event for the local youths. 

YG also worked with KT to establish 'Next Interactive K (NIK)'. They built a hologram performance space, 'Play K-Pop' in Jeju Island. Again, the Ministry of Culture, Sports, and Tourism worked with the project, along with Ministry of Science, ICT, and Future Planning. 



YG's boy band, Big Bang, was selected as an honorary ambassador for 'Creative Korea' -- a new branding campaign for South Korea. The group will be active as 'Creative Icon' from the 2016 Rio Summer Olympics until the 2018 Pyeongchang Winter Olympics. 


SEE ALSO: 'Produce 101's F class reportedly interrogated after news of discrimination leaked


It seems like YG Entertainment works the hardest out of all of the entertainment companies. More exactly, YG has been aggressive in culture fusion and culture prosperity projects. Of course, YG is a business that knows how to work with cultural contents because it is a top Hallyu business. 


Therefore, it is reasonable to think that YG just applied to these projects in a normal fashion and simply won over the Ministry of Culture, Sports, and Tourism. Maybe. However, eyebrows were raised when the Blue House (presidential residence, much like the White House in the U.S.) announced the 'Uijeongbu Comprehensive Culture Complex Development' planning brief. 




YG Entertainment made a business agreement with the city of Uijeongbu on January 16, 2015, in order to develop the 'K-POP Cluster' complex.  YG was set to invest 100 billion KRW (~$92 million) into the complex.


The problem, however, was in the selection process. An open public bidding did not take place. When the city officials of Uijeongbu were questioned, the answer was that the contractor was chosen because of a personal tie or special connection.  

During a phone call with 'Dispatch' on November 4, an Uijeongbu official stated, "Regarding the K-Pop Cluster, we had a personal connection with YG, so we suggested that they join in the business. There was no contact with the other agencies." 


However, according to Korea law (Local Contract Law, Article 9, clause 1), when a local government is trying to hire a contractor, they must hold an open public bidding. It is to prevent any undue or unlawful influence in the decision-making process. 


The reason why President Park's Culture Fusion Project became controversial to begin with, is because it lacked transparency. Many suspect that the reason why so many private contracts exist in the project is because the influence of Choi Soon Sil and Cha Eun Tak


Back to the K-POP Cluster, the Uijeongbu official stated to Dispatch, "When the culture complex site is created, (based on the contract) the lot will be sold to YG. However, the site will need to be used in a manner aligned with the original intended use." 




The land YG will be buying is 49,600㎡ (around 12.2 acres). Based on the information YG released to media, YG had prepared 37,500,000,000 KRW (around $32.8 million USD). That is a price of about 2,500,000 KRW ($2,190 USD) per 3.3㎡. However, the price has risen dramatically to about 8,000,000 KRW ($7,000 USD) per 3.3㎡ because of a new highway that is being built near the area. The Greenbelt zoning law that was the only hurdle to going forward with the project is also being taken care of by the government.


 

Back on July 7 of this year, President Park emphasized that there should be urgent action for the Uijeongbu Comprehensive Culture Complex establishment, during the 10th annual Commerce Investment Promotion Meeting. 


The next day, on July 8, Ahn Byung Yong, the mayor of Uijeongbu thanked the president, stating, "Because of President Park's order, the Secretary of Land Infrastructure and Transport along with the Secretary of Culture Sports and Tourism promised that they would work to clear the limited development policies."  

One word from President Park and the difficult obstacles in the way were solved. An Uijeongbu official told Dispatch, "Reviews from the Ministry of Land, Infrastructure and Transport have been completed. After the paperwork is done, we will announce the clearance of the greenbelt zone."


When everything is over, YG will triple its profit from the investment with the sale of the land.

Experts are questioning the way YG were able to make a contract for this project. They say that using 'personal ties' to select a contractor and business partnership for a government project is problematic. For example, SM Entertainment went through an open public bidding to win Coex Artium to build their SM Town Theme Park back in 2012. 


On November 3, Congressman Ahn Min Suk stated, "Choi Soon Sil and Jang Shi Ho have infiltrated into the entertainment industry and have influenced a large entertainment agency and certain singer/group." Many suspect that the agency the congressman spoke of is YG Entertainment. 

As explained thus far, no other entertainment companies have worked this closely with the Ministry of Culture, Sports, and Tourism. 

Dispatch also reports that the suspected 'tie' between YG and Choi Soon Sil is Cha Eun Tak. Cha and YG have worked together for a long time. He was the creator and director for Big Bang's "Lies" MV and more recently, Psy's "Hangover" MV. 

Of course, all of this might just be coincidental. We cannot talk about 'inappropriate favors' just because a few connections that may or may not exist. However, YG definitely seems to have invested a lot into the projects of the Ministry of Culture, Sports, and Tourism, which will give huge ROI (Return On Investment) for YG if the Uijeongbu Culture Complex development finishes as planned. 

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    Tags:

    1. misc.
    2. yg entertainment


    bokkeumbap Wednesday, November 30, 2016

    #YGisoverparty

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    PacifistDJ_OKO Saturday, November 5, 2016

    YG always break the law, i'm not not surprise

     0
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    Ashuranmarun PacifistDJ_OKO Saturday, November 5, 2016

    What about SM ?

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    cococcchanel Saturday, November 5, 2016

    It was an interesting read, now I have to tend to my popcorn!

     3
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    Ange_kpop Saturday, November 5, 2016

    Im sure the CEO of SM paid for this article, because they want to damage YG image. Seriously if BIGBANG doesnt  represent creative Korea who else will do? BIGBANG is a massive group around the world not only in korea nobody can deflate they famous.

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    LAFF92 Saturday, November 5, 2016

    From this article,YGE launched a non proft organization helping youths in need.YGE  also got involved with a voluntary event for the local youths in Malaysia. Both projects were done with the Ministry of Culture,Sports andTourism. Isn't this understandable? LOL. Should YG partnered with the House of Versace instead? Both projects benefited the youths.I don't blame readers to  concentrate more into the more controversial and juicy tidbits but YGE Company, busy as they are still took the time to put importance in helping the youths and culture prosperity projects.

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    LAFF92 Saturday, November 5, 2016

    Indonesia not Malaysia, lol. Really AKP, where is my EDIT button, it would be 2017 soon !

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    bangeryun94 Saturday, November 5, 2016

    Congressman?????  We don't have CONGRESSMEN but hey thanks for just confirming you're too lazy to look up what members of government are called in Korea.  And yes, that is my only take away from this story

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    BigBlueagain Saturday, November 5, 2016

    Looks like YG may just have had their hand in that cookie jar. I expect he'll sue, but then again a LOT could be uncovered in discovery during a lawsuit that YG just might not want out in the open.

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    Sheshema BigBlueagain Sunday, November 6, 2016

    Oh brother

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    Xvipxni Saturday, November 5, 2016

    Was PBG and the other actor not enough for you dispatch ? Honestly this is getting ridiculous.

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    mydisplayname Xvipxni Saturday, November 5, 2016

    as this scandal is trending, it will drag many with it. Last week was PBG, now it is YG. I'll not be surprised if there's another revelation next week.

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    Xvipxni mydisplayname Saturday, November 5, 2016

    They're taking a dark turn of YG's who's next I guess

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    Mitsuki2002 Saturday, November 5, 2016

    Dispatch honestly has too much free time to write about all this rubish

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    shannnnt Saturday, November 5, 2016

    YG be starting a suing party soon. Imma just grab my popcorn and wait for the show to start.

     4
     0Reply Report Share
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