The special investigation squad of the Seoul Metropolitan Police Agency recently summoned a key figure in sex-for-favors suspicions surrounding former YG Entertainment founder and chief producer Yang Hyun-suk, the police said Tuesday.

The suspect, known as “Madam Jung,” reportedly has ties with high-profile figures.

MBC’s investigative program “Straight” raised the allegation that Yang had called in over 10 prostitutes through Madam Jung to a meeting with eight investors from Southeast Asia in July 2014. Of the eight investors, two allegedly received sex for favors.

The report also said that Yang and YG singers rented a high-end restaurant in Seoul to treat the investors.

Police said they questioned Madam Jung as a suspect in involvement in providing prostitutes.

Though Jung admitted to the presence of female workers, she denied charges of prostitution.

“The statute of limitation is an issue to be reviewed later on, first we need to confirm the allegations raised in the media,” police said.

The statute of limitations for the case is believed to expire next month. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)