Reuters/Tim Chong

YG Entertainment fell 14% following news that a member of its K-pop group Big Bang was charged with supplying prostitutes.

The boy-band member Seungri denied the charges and announced his retirement from show business.

The rival South Korean entertainment companies SM and JYP also fell following the news.

The South Korean entertainment company YG Entertainment plunged more than 14% on Monday following news that a member of its K-pop group Big Bang had been implicated in a prostitution investigation involving a Seoul nightclub.

The performer, known by his stage name of Seungri, was charged with supplying prostitutes at a nightclub he controls, according to Variety. The singer denied the charges and immediately announced his retirement from show business.

"I think it would be good for me to retire from the entertainment industry at this point," Seungri said via Instagram. He was scheduled to join the South Korean military this month as part of the country's mandatory military commitment, according to the news agency Yonhap. Speculation has risen that he could seek to defer his enlistment amid the growing scandal.

Big Band was formed by YG Entertainment in 2006 and became one of the best-selling digital pop groups in Asia. Shares of other South Korean entertainment groups, such as SM and JYP, also fell on Monday's news.

NOW WATCH: There's a secret room behind Mount Rushmore that's inaccessible to tourists