Seungri Revealed To Have Invested In Establishment Of Burning Sun Despite Previous Claims
On March 28, news outlet Yonhap News relayed words from various sources who have the insight into the management of Burning Sun.
The outlet reported that a company named Jun Won Corporation, a HR representative of Seungri, and a Taiwanese businesswoman known as Madam Lin gathered at an undisclosed location in Gangnam, Seoul around October and November 2017 to sign an initial investment contract for the management of Burning Sun.
Jun Won Corporation is the company managing Le Méridien Hotel, where Burning Sun is located. It is reported that Jun Won Corporation invested around 1.2 billion won (approximately $1,077,810), Madam Lin invested 1 billion won (approximately $879,845), and Seungri invested 225 million won (approximately $197,965).
Previously, Seungri commented through a statement that he was not involved in the roles of operating and managing Burning Sun. He also argued that he was simply in charge of publicly promoting the club with his celebrity status.
One source stated, “You can assume that cash investment [for Burning Sun] came from Jun Won Corporation and Madam Lin. Yuri Holdings acquired shares without actually investing. Jun Won Corporation also invested in building the facilities of Burning Sun.”
This investment is separate from the division of shares that was previously reported. According to the police, Jun Won Corporation is Burning Sun’s largest shareholder with 42 percent. Yuri Holdings and Madam Lin each hold 20 percent, Burning Sun CEO Lee Moon Ho holds 10 percent, and the other CEO Lee Sung Hyun holds eight percent.
The police are looking into a possibility of Jun Won Corporation, Madam Lin, and Seungri engaging in the actual management of Burning Sun to retrieve their initial investment. In addition, the police are looking into suspicious money flow that they noticed while analyzing Burning Sun’s financial records.
The police acquired a year’s worth of financial records from Burning Sun and have been checking the possibility of various criminal activities in general management of the club such as tax evasion.
According to several sources, employees at Burning Sun reported each day’s sales to both Le Méridien Hotel and Jun Won Corporations after work every day.
A source from the police said, “We are checking to see if there are suspicions of embezzlement or tax evasion that occurred in the process of distributing Burning Sun’s profits to MDs (promoters). We are questioning some people in relation to Burning Sun as witnesses.”
The police are suspecting that MDs, promoters who invite guests into the club in exchange for a commission, may have been mobilized to carry out various criminal activities of Burning Sun. Suspicions include tax evasion and money laundering by having MDs receive money for drinks through their personal bank accounts, after which they would transfer the money back into the company’s bank account.
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