YG Entertainment‘s CEO Yang Hyun Suk revealed the reason why the company parted ways with Se7en.

On April 26, Yang Hyun Suk spoke with the media after the “BIGBANG 2015 World Tour ‘Made’ in Seoul.”

Se7en attended the show as well as 2NE1‘s CL and Minzy. In particular, Se7en attended and showed his support for his former labelmates BIGBANG, even after leaving the agency.

Yang Hyun Suk said, “Actually, Se7en’s contract with YG had ended before he left for the military. Before he left, we had already established that he would not re-sign with YG. It wasn’t that we didn’t have affection for Se7en, but since we were with him for so long, there was a limit for us and we couldn’t provide him with new music. For the same reason, we let Gummy go as well.”

He added, “We thought it would be better for him to be with another agency after his military service in order to make new music. It’s possible to misunderstand since the controversy occurred, but the reason why Se7en is here today at the Big Bang concert is because what I’m saying is true.”

Meanwhile, Se7en was swept up in a controversy when he was caught leaving grounds without permission and entering a massage parlor. Afterwards, he was sentenced to 10 days in military jail and was discharged from the military on December 28.

Source (1)

See also:

Celebrity Soldiers Se7en and Sangchu Reportedly Seen Visiting Adult Massage Parlors

Se7en and Sangchu Plus Five Others Sentenced to Military Jail

Se7en Officially Discharged from the Military, Thanks Fans and Apologizes for Past Controversy

Se7en and YG Part Ways as Contract Is Not Renewed