Yuri Holdings CEO Yoo In Seok has confessed to prostitution activities with Seungri.

Seungri and Mr. Yoo were summoned by the Seoul Metropolitan Police Agency for investigation on the 23rd under suspicions of prostitution at a party they held for 7-9 Japanese investors that visited Korea in 2015.

The two men originally denied the accusations saying "there was no prostitution or sexual services" involved however during interrogation Mr. Yoo admitted to the charge when presented with recounted details by a woman in her 40s, a prostitute, who was at the event.

According to Police, on Dec 24, 2015, a couple of Japanese businessmen and their acquaintances visited Korea for a 3-day stay. The investors stayed for 2 nights at Hotel H, a 5-star hotel in Seoul, at their most high-end rooms. Police believe that CEO Yoo called in prostitutes for the 2 days straight and let them enter the investors rooms. More than 10 prostitutes are said to have been mobilized. Allegedly, the women performed sex services for the men day and night with some on the rooms having 2 women at a time. The women were hired for sexual services for the investors only, not for Mr. Yoo or Seungri.

According to police investigations, 30 million KRW (~$27,000) in hotel expenses was paid for by Seungri using a corporate YG Entertainment credit card, his agency at the time. Unlike Yoo who admitted to the prostitution, Seungri reportedly denied the allegations in the probe and was quoted saying, "yes, I admit to paying for the hotel, I didn't mean to pay for the sexual services." Seungri reportedly told the police that "he had been welcomed by a Japanese businessman from overseas and he only held the lodging for him because he was coming to Korea during Christmas. He didn't know that they would pay for prostitution services."

However, a police official revealed the opposite saying, "When we look at the Katalk conversation which contained the circumstantial evidence suggesting sexual entertainment, it's hard to trust Seungri's statement that he didn't know. There is a conversation in the tokbang with Seungri, Yoo and Jung Joon Young where they find out that CEO Yoo was sending prostitutes to a group of Japanese businessmen. In addition, Yoo even tried to send some of the prostitutes he had mobilized to Jung Joon Young as well. Yoo said to Jung Joon Young, "I will send you a gift. What's your address?" When asked about this, Seungri said, "I don't remember."

In addition to this case, Seungri is also being investigated for another instance of prostitution at his birthday party in Palawan, Philippines. Seungri claimed that the expenses paid to the women who attended the party was for travel but the amount paid surpasses a simple travel expense reimbursement.

Police plan to request arrest warrants for Seungri and CEO Yoo on charges of facilitating prostitution. A police official said, "The two have also been booked by the Intelligence Crime Investigation Unit on charges of embezzlement so we're considering whether to apply for a warrant by combining the charges."

Source: Chosun Ilbo