In the midst of allegations of tax evasion, it has been reported that Yang Hyun Suk built an unauthorized extension of Building “A” in the neighborhood of Seogyo in the Mapo District. The issue has been raised that Yang Hyun Suk illegally raised the building again less than one year after he made corrections to the same building for unauthorized expansion as well.

As investigated by Newspim, two warehouse buildings were constructed with iron pipes and a canopy on the roof of Building “A.” This falls under a violation of the Building Act as the unauthorized extension occurred without permission from the Mapo District Office. Around the unauthorized extension, there are multiple large outdoor air conditioners, tables, chairs, and more.

Building “A,” which is owned by Yang Hyun Suk, has two basement floors and four floors above ground and is registered as a neighborhood living facility. The building includes “Samgeori Pocha” and “Samgeori Star Night,” which are owned by Yang Hyun Suk. “Samgeori Star Night” has a dance stage installed, so it is under suspicion of tax evasion as it is registered as a general restaurant business rather than an entertainment bar business, allowing a lower tax rate.

The building has gone through repeated unauthorized extensions. After being built in 2012, Building “A” was caught by the Mapo District Office for violating the Building Act nine times for unauthorized extension, landscaping area damage, and more. While the district office’s correction orders have been implemented or approved, Yang Hyun Suk violated the Building Act again last year and this year. In 2015, Yang Hyun Suk was summarily indicted with a fine of 3 million won (approximately $2,600) by the prosecution on the charge of illegally changing the structure of a portion of Building “A” and the YG Entertainment building in the neighborhood of Hapjeong.

In June 2018, when Yang Hyun Suk was caught for unauthorized extension of the roof, there was a demolition order from the district office for the unauthorized expansion of the 30 square meter (approximately 322.9 square foot) warehouse building. It was recorded in the building register that the correction was made in the following month of July, but the warehouse was recently built again without permission.

An official from the Mapo District Office said, “After the order of voluntary demolition, we checked on site that the warehouse building was taken down and took a picture, so it is a violation of the Building Act if the warehouse is built again. Measures such as a corrective order on site will be taken.” The source, “It is difficult for the district office to crackdown [on violations] every time, and it seems as they have used the fact that it is easy to take down a non-permanent building to rebuild the warehouse.”

If Yang Hyun Suk does not follow through with the district office’s demolition or correction orders, he may be fined. The violations could also be reported to the police. A source from the police stated that besides Yang Hyun Suk’s suspicions of tax evasion, there is nothing else in particular that is being investigated as it is difficult to start an investigation on violations of the Building Act [since there are corrective measures].

Previously in 2017, Yang Hyun Suk was also fined 3 million won (approximately $2,600) for using a building for a different purpose than what it was registered for.

In addition, the Mapo District Office has revealed that YG Entertainment first received a demolition order for an unauthorized extension of the YG Entertainment building in February 2010, but this extension still remains. It is a 33 square meter (35.2 square foot) office that was added as an extension to the first floor of the YG Entertainment building.

Since 2010, the Mapo District Office has sent a demolition order to YG Entertainment every year. Instead of carrying out the order, the company has been paying a fine of 10 million won (approximately $8,800) to 20 million won (approximately $17,600) each year.

Regarding this, a source of the Mapo District Office commented, “The procedure can be carried out to forcefully demolish the unauthorized extension,” but explained that there are currently no resources in operation to do so. As a result, the only possible measure at the moment is to issue the fine every year until the order is followed.

YG Entertainment has not provided a response to the reports.

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