Drug negative and female director's statement overturned... Is G-Dragon hit with a penalty worth tens of billions of won?

Will Big Bang's G-Dragon (35, Kwon Ji-yong) face a huge penalty?

According to the industry, there has been a possibility that G-Dragon, who was recently booked on charges of drug use, may be charged a penalty by the brand for which he is an advertising model. G-Dragon is an advertising model for French high-end brand Chanel, Singapore beer Tiger, and German brand BMW. Chanel has represented the brand image for 7 years since 2016, and Tiger and BMW have been models since the beginning of this year.

The possibility that G-Dragon will be hit with a huge penalty is due to his recent arrest on drug charges. After being booked, G-Dragon strongly denied the charges and actively worked to prove his innocence by voluntarily appearing at the police station and submitting body hair, urine, and fingernails toenails.

Afterwards, the National Institute of Forensic Science (National Forensic Service), including a quick test, released analysis results for body hair and fingernails, but all were negative. The industry believes that the police do not have physical evidence on G-Dragon's drug charges.

Accordingly, there is a growing possibility that the police will not summon G-Dragon additionally and will conclude the case without charges and send him back. Initially, the evidence related to G-Dragon's charges began with the statement of Mr. A (29, female, arrested), the manager of an entertainment establishment in Gangnam. During the police investigation, Mr. A said, "On December 7 of last year, G-Dragon visited his entertainment establishment." “There was cocaine left after inhaling on a tray in the bathroom of the room where G-Dragon was,” he said, giving weight to G-Dragon’s drug charges. However, in a recent investigation, Mr. A is said to have made a statement that discredited G-Dragon's allegations, saying, "I didn't see it in person. Another actor who came with G-Dragon may have done it."

However, even in this situation, there is a possibility that brands for which G-Dragon is an advertising model may seek a penalty for damaging their image. It is not known exactly how much G-Dragon's advertising fee is, but considering that the penalty is usually 2 to 3 times the contract amount, the industry estimates that the penalty per brand for Tiger and BMW is about 10 to 15 billion won. Industry estimates are that if penalties are imposed from these two brands and Chanel, it could amount to 50 billion won.

Meanwhile, G-Dragon, who has not yet been cleared of police charges, also called for "the prompt announcement of the results of the investigative agency."

Choi Ji-ye, Ten Asia Reporter wisdomart@tenasia.co.kr