YG CEO Yang Min Suk has survived the no-confidence vote.
The shareholders meeting ended in just 15 minutes without much trouble after it started at 9:30am on the 22nd. Most of the agenda items, including re-election of the incumbent CEO got almost unanimous approval from the shareholders.
Even though the CEO may have won the confidence vote, industry watchers say he and the agency will be beset with many unsolved problems to recover trust from the investors. The YGE stock price has plummeted almost 30% in recent weeks since the police investigations began last month amid Seungri's sex bribery, prostitution, and corruption allegations. To make matters worse, YGE is currently undergoing a special tax investigation by the National Tax Service that began this week under suspicion of tax evasion. The tax auditors in charge of the investigation have been quoted by many citizens to be the "Avengers of tax audit with many of their audits resulting in evasions being found and no chance of bribery getting in. Apparently even a chaebol CEO couldn't find a way to contact them."
Some sources say it is also likely that its key investor Great World Music Investment, a subsidiary of L Catterton Asia, a private equity fund of French fashion powerhouse LVMH Group, could consider selling its redeemable convertible preference shares worth $60 million that were purchased at 48,000 won ($48.29) apiece back in 2014.
Currently the stock is trading at about 36,000 won. The company is required to decide on the sale of the stake by October this year.
Stay tuned for updates.