The lawyer, identified as “A”, claims he took part in a meeting with Daesung at a law firm 2 months before he purchased the building. The alleged meeting had multiple lawyers, a real estate agent and a bank manager present. There, Daesung reportedly asked about the responsibilities of the building owner if illegal entertainment was found on its premises.
On September 20, 2017, Daesung visited a law firm to find out if the building owner could be held responsible if illegal adult entertainment was found on its premises.
Before purchasing the building, he brought a real estate agent and the branch manager of a bank to receive consultation at the law firm.
There, he asked about the illegal entertainment laws, such as prostitution.
— Lawyer A
According to Lawyer A, Daesung already knew for sure that prostitution took place at the building he was planning to buy. He asked if it was possible to kick the tenants out but was told it was impossible to ask them to leave unilaterally.
At the time of the meeting, Daesung already knew exactly where the illegal entertainment was taking place in his [prospective] building. He knew for certain that there was an illegal store.
He also asked if it was possible to kick out a tenant that was committing illegal activities. The lawyer responded that the landlord can’t ask the tenant to leave unilaterally.
— Lawyer A
The legal office reportedly advised Daesung that the building owner could be prosecuted for soliciting prostitution if they were discovered to have turned a blind eye. The Special Act Of Prostitution claims that anyone who provides the location for prostitution to take place can be prosecuted.
Despite the alleged consultation, Daesung purchased the building in Gangnam for 31 billion won (~$26 million USD) 2 months after their meeting.
I understand that the documents were written as conservatively as possible. He knew that prostitution took place at the building, but he still purchased it. The law firm told him that if he continued to manage the building while turning a blind eye to the illegal activities, he can be prosecuted for soliciting prostitution.
Even after the legal consultation, Daesung purchased the building 2 months later.
— Lawyer A
News media contacted the mentioned law firm for documentation regarding Daesung’s alleged legal consultation but the law firm remained silent. YG Entertainment was unable to be contacted for a statement.
Daesung was recently accused of allowing illegal activities involving prostitution and drugs to take place in his building. He recently released an apology letter claiming he was unaware of what was happening as he had been serving in the army as soon as he bought the building.