Seungri, a former Big Bang member, is now embroiled in a paper company controversy.

According to an 'SBS 8 News' broadcast on the 7th, BC Holdings that was set up by Seungri in Hong Kong, was established by investments of 15,000 won each from Seungri, Yoo In-seok (former Yuri Holdings CEO), and Ryu. According to the report, the address listed on the incorporation documents can't be confirmed and even the separate offices listed couldn't be verified. It appears to be a "paper" company [shell company - a company in paper only].

According to BC Holdings website, the company touted operating capital of about 30 billion won in 2017. However an official said, "The actual amount is about 10 billion won. The 30 billion won was just the target," he explained. In response, the accountant said, "It as if something big is happening. It's as if they're hiding something," he was quoted saying. In the end, Hong Kong tax authorities launched an internal investigation. The Hong Kong official revealed that if the tax evasion charges were found, they will be severely punished. "We can collect 3 times the amount of tax evasion as well as criminal punishment, " the official said.

In March, Seungri announced his retirement from the entertainment industry when he was caught up in various suspicions due to the Burning Sun scandal involving singer Jung Joon Young. At the same time, he withdrew from BC Holdings and it was reported that he handed his stake to a Japanese investor. "It is normal to have 1-2% part of the investment, but for the equity capital to be 44,000 won while operating at 10 billion won? That's too small," a specialist revealed. Ryu, who was named president of the company alongside Yoo In-Seok said, "BC Holdings is just our consulting client. Because Seungri and Yoo In-Seok are not familiar with the work, we are trying to help. The agreement was made at the time of the establishment of the corporation in 2016, " he explained.

Police are investigating whether BC Holdings is related to offshore tax evasion and whether the allegations of power collusion and tax evasion are being obscured (concealed).

Additional source:OSEN