Following Seungri’s retirement announcement, YG Entertainment announced March 13, 2019 that his exclusive contract with the company has been terminated.
In a statement, YG Entertainment addressed the situation.
Hello, this is YG Entertainment.
We would like to bow our heads in apology for causing severe worry for many due to the numerous controversies and allegations, which began with the violence case at a club where Seungri participated as an advisor.
Shortly after announcing Seungri’s retirement from the entertainment industry back on March 12, YG Entertainment has accepted Seungri’s request to terminate his exclusive contract.
As an artist management company, we admit our failure to manage our artist with stricter care; we are currently reflecting on our actions.
Finally, YG recognizes a need for a mass revision of the company’s internal constitution, and we promise to work together with all employees of the company to make this happen.
Meanwhile, YG Entertainment’s stocks fell 14 percent March 11, 2019 following the news that Seungri was named a suspect for allegations he supplied prostitutes to potential investors. Seungri is cooperating with police and will be questioned further March 14, 2019. Seungri is also expected to enlist in the military March 25, 2019.
All parties are considered innocent until proven guilty in the court of law.
— Olivia Murray