News outlet Kukinews reported about the possibility of tax evasion by a club previously thought to be owned by BIGBANG’s Seungri  in  News

Back by:  TaekYon.Kim  on  March 6, 2019 03:26 AM

News outlet Kukinews reported about the possibility of tax evasion by a club previously thought to be owned by BIGBANG’s Seungri

There is a club known as Big Bang's member victory in Seokyo-dong, Mapo-gu, Seoul. The name is Love Signals. 

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It is located near Hongdae 'Three-way carriage'. Love signal was former club 'X'. X was in operation from December 2017 to August last year. Victory will be announced on the day of X's opening in his SNS account, "My club X is open under the Hongdae trunk car. Come on, "and stated that this is my club. Love signals have changed their names but their representatives are the same. When entering the Love Sign, 'bracelet' is also marked with the X mark. Love Signals also recognized the association of the two clubs.

Currently, LoveSignal operates like a regular club, selling liquor and dancing guests. It is not a problem to sell alcohol and dance in clubs. But this is clearly a violation of the Mapo-Ordinance. 

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Clubs are usually classified as 'entertainment establishments'. However, Love Signal is registered as a general restaurant, not entertainment. In 2015, Mapo-gu has enacted the Ordinance Regarding the Operation of Regular Restaurants Allowed to Dance in the Seoul Metropolitan City Seats. It was designed to allow the club to operate as a regular restaurant. The motto is revitalizing the clubs around Hongik University. As of December last year, 43 restaurants are allowed to dance in Mapo-gu. Love signals are also one of them.

The ordinance stipulates that guests should dance only in the "audience" rather than in a separate dance room at the "general restaurant where dancing is permitted". That is, there should be no stage. Whether or not there is a single phase that can be regarded as a stage is not important. Only dance on tables and chairs, the passage with these.

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However, on the 28th of last month, as a result of covering the cookie news planning and reporting team, the structure that looks like a stage in the love signal was confirmed. The stage is equipped with several rods. On the day of coverage, those who visited the club climbed the stage and danced the ball. In SNS, if you search for a love signal, you can see many images of visitors dancing on the stage.

According to the Food Sanitation Act, entertainment is a place where there is space for dancing. Therefore, love signals correspond to entertainment establishments and can not be allowed to dance in the first place. The Love Signal did not observe the ordinance but benefited. The nightlife is a 'heavy taxation' subject to tax heavier. Regular restaurants pay 10% of the fare with VAT. Allowance for dancing Love signals registered as regular restaurants have also paid only 10% tax. On the other hand, the night life liquor store should pay 10% of individual consumption tax and 3% of education tax. For example, if you earn 10 million won, you have to pay 1 million won for regular restaurants and 2.3 million won for entertainment. 

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Would victory know the violation of the ordinance? As a result of the detailed situation of the club, it was not a victory club. There is a separate owner in the archives. A corporation that operates love signals is A Corporation. As of December 31, 2016, A Hyundai YG Entertainment (YG Entertainment) has a stake of 70%, a representative brother and YG Entertainment CEO, Mr. Min Min Suk, 30%. Love signals are one of the two representative and two of the board of directors' own businesses.    

It can be a problem in many ways that this club is a representative. "YG Entertainment is not going to announce its official position because YG Entertainment has not been involved in the private business of its singers," Yang told reporters about the controversial club debate on January 31st. His remarks are placed with the facts revealed at the moment.  

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What about the stakeholders on the violation of the Love Signals ordinance? A Co., Ltd. said, "There is nothing to answer from our ship." "If it is illegal in Mapo-gu Office, it is illegal. Call the Mapo-gu Office and check. " YG Entertainment said, "It is not a matter that can be grasped at once." "I do not know when I can give you an answer." 

The Mapo-gu office has the view that there is a limit to enforcement. An official from the Mapo-gu office said, "We will go out to investigate general restaurants that allow dancing," but "the ward office has ordered the company to correct the violation, but it may not have been fixed." 

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