Seungri, 29, is now under investigation for brokering prostitution for investors, and has been booked without physical detention by police.
The 29-year-old singer from K-pop boy band BIGBANG is accused of lobbying potential investors by offering sex services at multiple nightclubs in Seoul's posh Gangnam district.
He faced police questioning at the weekend.
On March 11, a high ranking YG Entertainment employee explained to YTN Star that Seungri's retirement from the entertainment industry was decided on his own without a discussion with the agency. I've chose to retire from the entertainment industry because of the huge social controversy that has arisen. "As for the ongoing probe, I will take the investigation seriously to clear all the allegations", he said on his Instagram account.
The singer was also questioned by police in February over reports of drug-taking and sexual assault at the Burning Sun club, where he was a public relations director.
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"During the past month and a half, I have received criticism and hate from the public and been in a situation where every investigative agency in this country is investigating me". He apologized to fans and said he could not "tolerate causing harm to everyone around me in order to save myself".
I sincerely thank all of the fans in and outside of Korea who have given me lots of love for the past 10 years, and I think this is where I stop even if it's at least (to protect) the honour of YG and BIGBANG.
Band leader G-Dragon was also investigated for smoking marijuana in 2011, although he was released without indictment.
The club was reportedly known as 'Seungri's Club, ' a reference to 28-year-old K-pop star Lee Seung-hyun, known as Seungri.
The scandal comes ahead of his military service enlistment on March 25.