Yang Hyun Suk has once again denied the allegations of failing to declare luxury watches during customs clearance. His legal team claimed he does not recall the specific circumstances surrounding the watches and argued that receiving sponsored items is a common practice in the entertainment industry.
The second hearing for Yang Hyun Suk's violation of the Special Criminal Act (Customs Law) was held by the Seoul Western District Court’s Criminal Division 11, presided over by Judge Bae Sung Joong, on the morning of January 10.
When asked by the court to specify when and where he received the Richard Mille watches, Yang Hyun Suk’s lawyer responded, "He doesn’t remember the details." When asked how they could distinguish the watches mentioned in the indictment if multiple watches were received, the defense stated, "The burden of proof lies with the prosecution."
The defense further argued, "There is no evidence showing that the defendant wore the watch when passing through customs. The link between receiving the watch in Singapore and wearing it upon entry into Korea is unclear. At the time, YG staff members were aware of the situation, and potential issues related to gifts were reviewed. We believed there was no legal issue in bringing the watches into the country."
However, the prosecution contends that Yang Hyun Suk personally requested the watches from 'A,' the Asia representative of the Swiss luxury watch brand Richard Mille. According to the indictment, Yang Hyun Suk sent 'A' a message just before his Singapore trip, asking for the watches to be prepared.
In late August 2014, prior to his scheduled visit to Singapore from September 12 to 16 for a YG concert and an investment event, Yang Hyun Suk texted 'A' in English, stating, "I really want to get the watch I have been asking about." 'A' responded, "It’s ready for you, sir."
When the court asked, "If you don’t keep records, how do you ensure sponsored watches are returned later?" Yang Hyun Suk’s defense replied, "There is a common practice in the entertainment industry to avoid making the recipient feel uncomfortable when receiving sponsorships." The defense added, "In cases involving brand ambassadors, contracts are typically signed. However, for general sponsorships, it’s not reasonable to assume that they automatically violate customs law. We will further explain this through witness testimony."
Yang Hyun Suk’s legal team also challenged the prosecution’s valuation of the items, stating, "We don’t know how the cost was calculated." They argued that the prosecution’s claim that the watch alone cost over 200 million KRW (approximately 136,000 USD) was based on flawed criteria, adding, "There doesn’t seem to be a strict guideline for this."
The prosecution responded, "The valuation seems based on the import price rather than the domestic sales price, but since the item wasn’t formally imported, there’s no precedent for such a case." The prosecution announced plans to submit additional documents related to the valuation.
One of the watches in question—a skull-patterned model from Richard Mille—is valued at 711.51 million KRW (approximately 482,230 USD). The second watch, a black model received at a hotel, is worth 116.55 million KRW (approximately 79,383 USD). Both models were discontinued 10 years ago and are no longer available on the market.
Under Article 241 of the Customs Act, anyone importing goods must declare key details such as the item’s name, specifications, quantity, and price. Failure to declare items may result in up to five years of imprisonment or a fine equal to the greater of either 10 times the customs duty or the item’s cost price. If the cost of undeclared goods ranges between 200 million KRW and 500 million KRW, stricter penalties under the Special Criminal Act apply.
Yang Hyun Suk arrived at the courthouse at 10:55 AM, dressed in a black suit and wearing a mask. He remained silent in response to questions from reporters, including, "Why didn’t you declare the items?" and "Do you have any evidence to prove the watches were sponsorship gifts?"
Yang Hyun Suk is accused of bringing two luxury watches worth a total of 828.06 million KRW (approximately 561,682 USD) into Korea without declaring them at Incheon International Airport on September 16, 2014. The Busan District Prosecutors’ Office’s Public and International Crimes Investigation Unit, led by Prosecutor Yoon Kook Kwon, indicted Yang without detention on September 13 last year.
The next hearing is scheduled for April 18 at 2 PM.
SHARE
