On November 20, Channel A reported updates on a building owned by BIGBANG’s Daesung.

According to the network, taxation authorities reportedly told Daesung he will have to pay 1.2 billion won (approximately $1 million) in taxes for his building operating illegal adult entertainment businesses without a permit. He also reportedly borrowed over 5.2 billion won (approximately $4.4 million) from a loan company while using his building as collateral.

This is an update to Channel A’s July exclusive report on the operation of illegal adult entertainment businesses inside Daesung’s building. After this story was reported on, a police task force began investigations and taxation authorities ordered Daesung to pay an additional local tax of 1.2 billion won. Because the acquisition and property taxes that Daesung paid after purchasing the building were under the basis that these businesses were ordinary restaurants and not entertainment establishments, Daesung was ordered to pay additional tax payments.

Adult entertainment establishments were reportedly being run on five floors in the building. As a result, Daesung was fined the maximum property tax of 1 billion won (approximately $854,876) which is 16 times the general tax rate and a maximum acquisition tax of 2 billion won (approximately $1.7 million) which is four times the general tax rate.

Daesung previously released a statement saying he had no knowledge of these illegal businesses, and the taxation authority stated that the imposition of additional taxes is not related to this. All of the entertainment businesses have closed down and are under construction for remodeling, and the Seoul Regional Tax Office is conducting a separate investigation for suspicion of consumption tax evasion.

Channel A also reported that Daesung has borrowed 5.2 billion won from a loan company while using his building as collateral. In 2017, Daesung purchased the building at the price of 31 billion won (approximately $26.5 million) and received a loan from the bank. The building was on the market for 40 billion won (approximately $34 million), but the term for his loan ended before the building was sold. The loan seems to have been taken out in order to repay the loan from the bank.

The police plans to summon Daesung, who was discharged from the military in October, to investigate if he aided and abetted while knowing about the illegal adult entertainment businesses.

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