**2nd Trial for Violation of the Specific Crimes Aggravated Punishment Act**
Yang Hyun-suk, the executive producer of YG Entertainment, appeared at the second trial on charges of failing to declare luxury watches gifted to him abroad to customs. The trial was held at the Seoul Western District Court in Mapo-gu, Seoul, on the morning of the 10th.
[The FactㅣReporters Lee Yoon-kyung & Jung In-ji] Yang Hyun-suk, who has been indicted on charges of not declaring luxury watches received overseas, denied the charges again in the second trial. Yang’s side argued that he does not recall when he received the watches and claimed that receiving sponsorships is a common practice in the entertainment industry.
The Criminal Agreement Department 11 of the Seoul Western District Court (Judge Bae Sung-joong) conducted the second trial for Yang on the charge of violating the Specific Crimes Aggravated Punishment Act (Customs) on the morning of the 10th. Yang’s defense counsel responded to the court’s question about “when and where he received the watches” by saying, “I don’t remember clearly so it’s hard to specify.” It was also mentioned, in response to “how to differentiate the watches received if details are unclear,” that “the burden of proof lies with the prosecutor.”
Further, the defense argued, “There needs to be evidence showing the defendant was wearing the watch while passing through the airport, but there isn’t any, and merely stating it was given in Singapore and worn doesn’t suffice. At the time, company employees were collaborating, and the implications of receiving such a gift were thoroughly reviewed. Bringing the watch to Korea is not deemed a problem.”
However, the prosecution claimed that Yang first requested the watch from A, an Asian representative of the Swiss luxury watch brand R. According to the prosecution’s indictment, Yang sent a text message to A just before entering Singapore, asking to “prepare the requested watch.”
Ahead of a scheduled visit to Singapore for YG artists’ concerts and a luxury brand investment agreement ceremony between September 12-16, 2014, Yang messaged A in English from August 27-29 before departure, saying, “I really want to get the watch I have been asking about.” A replied, “It’s ready for you, my dear.”
In response to the court’s question, “If you don’t document it, how will you retrieve (the watch) later?” Yang’s side stated that “there is a custom in the entertainment industry to avoid making the recipient uncomfortable when offering sponsorships.” They further added, “While contracts may be made for ambassadors, it’s hard to consider general sponsorships as customs violations,” and indicated they could elaborate on such points through testimony.
Yang’s side contested the prosecution’s application of the Special Criminal Law, claiming, “we cannot ascertain how the value of the items was calculated.” In response to the prosecution’s assertion that the watch alone exceeds 200 million won, they countered, “the standard itself seems incorrect, as there doesn’t seem to be a strict criterion.”
The prosecution stated, “The product cost is based on the incoming price rather than domestic sales, but since it didn’t formally enter the country, there’s no precedent.” They plan to resubmit materials related to the product cost later.
The price for the skull-patterned watch from brand R that Yang received is valued at 711.51 million won, with the cost price alone being 208.1 million won. Another black watch received from a hotel is valued at 116.55 million won. Both models ceased production over a decade ago and are no longer available on the market.
According to Article 241 of the Customs Act, anyone importing goods from abroad must declare the name, specifications, quantity, price, and other items prescribed by Presidential Decree. Failure to declare the importation of goods may result in imprisonment for up to 5 years or a fine equal to or greater than 10 times the duty amount and the cost of the goods. When the import cost exceeds 200 million won but is less than 500 million won, aggravated punishment is applicable under the Special Act.
Yang, dressed in a black suit and wearing a mask, arrived at the court at around 10:55 AM. He avoided responding to questions such as “Why didn’t you declare the watches to customs?” and “Is there proof you received the watches as sponsorship?”
Yang is accused of importing two luxury watches worth a total of 828.06 million won into the country without declaring them to customs when he entered through Incheon International Airport on September 16, 2014. The Busan District Prosecutors Office’s Public International Crime Investigation Department indicted Yang without detention on September 13 last year.
Yang’s next court date is scheduled for April 18 at 2 PM.