Yang Hyun-suk, the chief producer and founder of YG Entertainment, is leaving one of South Korea’s biggest entertainment agencies following a slew of scandals that dented the company’s public image in recent months.
In an emailed statement Friday, Yang said, “I’ve dedicated the last 23 years of my life to YG Entertainment. It was my biggest pleasure to support the best artists and music and the only gift I can give to society and fans.”
“From today however, I’ve decided to step away from all responsibilities and positions at YG,” he said. His departure was soon followed by the resignation of his younger brother and CEO Yang Min-suk. In the statement, he said he wanted to put out a clear message following his older brother’s move. The surprise announcements come after several YG artists were mired in a slew of scandals including former iKON member B.I and Seungri of Big Bang.
Despite his official departure, Yang is still the largest shareholder of YG with a 16.12% stake, while his younger brother and CEO Yang Min-suk owns 3.31%.
Since the Seungri scandal broke in January, YG’s stock price has tumbled almost 30 percent. On Friday, the price ended at 29,500 won ($24.88), compared to 42,250 won on Jan. 28.