A businessman at the centre of Malaysia's largest ever corruption case has been implicated in yet another high-profile scandal, amid allegations of sex-related crimes that have engulfed the squeaky clean world of Korean pop music.

Key points: YG Entertainment founder denies allegations he procured sex workers for South-East Asian investors

YG Entertainment founder denies allegations he procured sex workers for South-East Asian investors Wide-reaching sex scandals have plagued K-Pop since early this year

Wide-reaching sex scandals have plagued K-Pop since early this year Jho Low remains wanted by authorities in Malaysia, Singapore and the US for allegedly stealing money from 1MDB

South Korean media reported Monday that K-pop label YG Entertainment's founder Yang Hyuk-suk had procured sexual services for foreign guests including the Malaysian financier Low Taek Jho, commonly referred to as Jho Low.

The Munhwa Broadcasting Corporation's (MBC) program Straight alleged that Mr Yang had arranged sex workers for two South-East Asian investors in July 2014 at his NB nightclub in Seoul.

One of the men was a Thai national and the other was Mr Low, the MBC investigation reported.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 2 minutes 43 seconds 2 m 43 s K-pop industry mired in sex scandals

YG Entertainment, which has faced mounting accusations of sexual misconduct by its owners and pop stars since early this year, called the claims "groundless".

Representatives for Mr Low acknowledged his links to prominent K-pop industry figures in a statement but denied involvement in sexual misconduct.

"He was never involved in, nor aware of, any conduct of the kind alleged in the MBC Straight report," a spokesperson for Mr Low said via his US-based lawyers.

"Mr Low is a friend of Psy, and through him met Yang Hyun-suk," they added, referring to the star behind 2012 viral hit Gangnam Style.

Psy was signed to YG Entertainment between 2010 and when he left the label in May 2018.

Jho Low is reported to have been supplied sexual services by Yang Hyun-suk in 2014. ( YouTube: 탐사기획스트레이트 )

An industry besieged by scandal

K-pop is wildly popular and big business across Asia, including in Mr Low's native Malaysia.

Sordid details of alleged sexual misconduct by prominent male figures within the industry — including violence against women and the sexual abuse of minors — have shocked fans worldwide.

Back in February, shares in YG Entertainment fell more than 20 per cent after their star Lee Seung-hyun, known as Seungri, was reported to have offered sex workers for clients and misappropriated funds from his Seoul nightclub, Burning Sun.

Earlier this month, police sought another arrest warrant for Mr Lee on charges of procuring sex workers for himself.

He also allegedly shared photos of a nude woman which he had taken without consent.

Seungri said he was leaving the music industry to fight the allegations. ( Reuters: Tim Chong, file photo )

The scandals have emerged at the same time K-pop supergroups including BTS and Blackpink have gained a foothold in the notoriously difficult US music market.

"Unfavourable public opinion can be fatal for a K-pop career and YG Entertainment has seemingly been struggling from recent news after its stocks dipped following these latest allegations," Jeff Benjamin, a K-pop columnist for Billboard, told the ABC.

"I don't get the sense the general view of K-pop in Korea is impacted by the actions of a few artists and businessmen since they see the music industry comprised of so many different facets, people, companies and artists," he said.

"It's a bit unfortunate that all K-pop artists and companies are being somewhat looped into this."

The infamous Jho Low

The superyacht Equanimity is a lavish symbol of Malaysia's 1MDB corruption scandal. ( Reuters: Antara Foto/Wira Suryantala )

Mr Low, meanwhile, remains at large.

He is currently wanted by Malaysian, Singaporean and US authorities for allegedly masterminding a scheme to help disgraced former prime minister Najib Razak misappropriate $US4.5 billion ($6.5 billion) from 1MDB, Malaysia's sovereign wealth fund.

The country has more aggressively pursued investigation of the case since the election of Prime Minister Mahathir Mohamad in May 2018.

Mr Low was charged in absentia last December on five charges under Malaysia's anti-money laundering and terrorism laws.

Much of the money allegedly stolen by Mr Low was allegedly spent on parties, gambling and alcohol as well as lavish gifts for celebrities such as Australian model Miranda Kerr.

He is also thought to have purchased the $US250 million ($360 million) superyacht Equanamity with the embezzled funds. It was later seized and sold by Malaysian authorities.

Kerr last year returned millions of dollars worth of jewellery she received from Mr Low, while actor Leonardo DiCaprio gave back an Oscar statue once owned by Marlon Brando.