The manager of a Hongdae club reportedly co-owned by YG Entertainment CEO Yang Hyun-suk will face trial this month for allegedly registering the club as a restaurant, therefore making it an illegal business, Yonhap reported.

The 33-year-old club manager, only identified by his surname Kim, operated the club spread across two basement floors in a building owned by Yang. The entertainment agency chief is known to have participated in the club business in the form of a joint investment, according to the news agency.
The 300-square-meter, two-story club opened in Hongdae in 2007, gaining popularity among the younger crowd. However, the report said it was an illegal business as the building was not zoned for clubs, karaoke or other entertainment businesses.

The report said the club has been operating illegally for seven years, registered as a restaurant to fit the building’s zoning, while evading restrictions under the local law.

Police found the club violated the law nine times and was fined four times. In its latest punishment, the club was suspended last September, but pushed ahead with operations, a move that resulted in its closure.

“Due to continuous breaches of the summary order by the court, I decided to put the case on trial,” Seoul Western District Court judge Lee Gwang-woo told Yonhap. The trial will be held on May 14.

By Ha Ji-won, Intern reporter (jiwonha@heraldcorp.com)