On September 13, YG Entertainment released a statement expressing its disappointment and difficulty accepting the sudden indictment of Yang Hyun Suk for failing to declare luxury watches received as gifts while overseas.

According to YG, Yang Hyun Suk, who served as the company’s executive producer, received luxury watches as part of a promotional request from a watch brand back in 2014. 

These watches were used to promote the brand on domestic broadcasts. However, in 2017, the brand was caught avoiding customs rules by importing and exporting watches without proper clearance. Yang Hyun Suk was investigated because he had received some of these watches for promotional purposes.

YG explained that Yang fully cooperated with the investigation in 2017, even voluntarily submitting all the sponsored watches to the authorities, wishing to avoid becoming embroiled in any minor issues due to his status as a public figure.

The Busan District Prosecutor’s Office Public and International Crimes Investigation Department revealed earlier that Yang had been indicted without detention for violating customs law by not reporting two luxury watches he received as gifts in Singapore in 2014.

The case had been delayed because the watch brand’s representative was out of the country. When the representative recently returned to Korea, the case was reopened, resulting in Yang Hyun Suk’s indictment.

YG criticized the prosecution's handling of the case, stating, "During the investigation, the watch brand’s representative frequently changed their testimony, and with the statute of limitations nearing its 10-year mark, the prosecution failed to adequately investigate the witnesses whose statements matched Yang’s." The company also expressed regret over the prosecution’s decision to hastily indict Yang just days before the statute of limitations expired.

According to YG Entertainment, Yang Hyun Suk plans to fully cooperate with the upcoming trial while continuing his work as YG’s chief producer.

Full statement from YG Entertainment:

"We express deep disappointment and difficulty accepting the sudden indictment by the prosecution.

In 2014, Yang Hyun Suk was requested to promote a watch brand and received their products as sponsorship for exposure on broadcasts.

Later in 2017, when it was discovered that the brand had bypassed customs to import and export multiple watches, Yang Hyun Suk was investigated in relation to the watches he received for promotional purposes.

At the time, Yang fully cooperated with the investigation and, wishing to avoid any issues as a public figure, voluntarily submitted all the sponsored watches to the authorities.

The Asian representative of the brand, who often visited Korea from 2013 onward due to the opening of their official store in Korea, repeatedly refused to comply with the investigation in 2017 and did not enter Korea for seven years until recently, when the investigation resumed upon their return.

Throughout the investigation, the representative’s testimony frequently changed. Yet, with the statute of limitations nearing 10 years, the prosecution failed to properly investigate the witnesses whose statements matched Yang’s. Instead, they hastily concluded that the sponsored items had been brought into Korea without customs declaration and proceeded with the indictment.

We deeply regret the prosecution’s rushed and excessive decision to indict just days before the statute of limitations expired.

We believe this mistake arose from a misunderstanding of the celebrity sponsorship process and the fact that Yang Hyun Suk is a well-known figure.

Yang Hyun Suk plans to sincerely participate in the forthcoming trial and will continue to focus on his role as YG’s chief producer. Thank you."

SEE ALSO: YG Entertainment founder Yang Hyun Suk indicted for smuggling high-end watches