Channel A Reports On Details Of Contracts Between Daesung And Businesses In His Building
Last week, the network had reported that illegal adult entertainment businesses, some of which allegedly involve prostitution services, were being operated on five floors of the building. Daesung subsequently released a statement denying knowledge of the illegal activities in his building and announced that he will be taking legal action against the relevant businesses. The police have also stated that they are looking into the matter.
In the July 30 report, “News A” reported that they had exclusively acquired a copy of the contract that Daesung had signed with one of the businesses in the building before he took over ownership of the building.
The tenant signed the contract in November 2017 at Daesung’s request. The contract stipulates that if the tenant is found guilty of an illegal act or if they are found operating a business beyond the limits of an ordinary restaurant, then the contract will immediately be terminated.
A source from one of the entertainment businesses in the building said that he had signed this contract and claimed that these conditions were emphasized in the contract because Daesung was already aware of the illegal activity in the building.
A legal representative, who had been present at the signing of the contract, confirmed that Daesung had emphasized those two conditions of the contract and said, “It was unusual to some degree.”
The Gangnam District Office, which is investigating the building, have stated that they could levy an additional tax of up to 1 billion won (about $850,000) against the building for operating adult entertainment businesses. The district office also stated that there could be further punishment if it is determined that the owner of the building knew that there were adult entertainment businesses in the building and deliberately did not pay the correct taxes required for those businesses.