SEOUL, March 18 (UPI) -- South Korean police are investigating the relationship between shuttered nightclub Burning Sun and the upscale hotel in which the club was located.
Burning Sun, where staff may have routinely drugged women before the club's VIP guests raped the victims in hotel rooms, was located in Le Meridien, a five-star hotel with a global presence.
The nightclub attracted investors, often through co-owner Seungri, a former member of boy band Big Bang.
One Burning Sun investor forged an indirect connection with Le Meridien with a sizable investment of about $8.8 million, Yonhap reported Monday.
Cheonwon Industry, the South Korean firm that converted the hotel before it reopened as Le Meridien, may have facilitated the investment. The hotel was previously a Ritz-Carlton.
Cheonwon is also the hotel's operator. The investment was made through an "intermediary firm" and the special channel may have been used to attract large amounts of money to Burning Sun, according to Yonhap.
A 2017 statement of audit for Cheonwon shows a golf course developer made the $8.8 million investment. Cheonwon's chairman, surnamed Lee, owns a nearly 70 percent stake in Cheonwon. Lee also owns a 40 percent stake in the golf developer.
Members of a golf club belonging to the developer previously asked South Korea's fair trade commission to investigate unfair practices. South Korean golf clubs charge exorbitant rates for memberships that range from $200,000 to $1 million.
In a related case, South Korean police said Monday it would seek an arrest warrant for Jung Joon-young, a pop singer who is suspected of illegally recording and disseminating sex videos, according to the Korea Herald.
Jung was a member of secret online chat rooms where Seungri was active. Male participants would share illegal footage.
Seungri has said he would retire from all public activities.