Police have announced an intensive control on illegal karaoke operations, violations of business hours, use of credit card reader in other people’s names, and prostitution.
The announcement was made on Tuesday at a meeting at the Olympic Police Station where more than 20 karaoke business owners in Koreatown participated.
Officials from the Internal Revenue Service (IRS), the Alcoholic Beverage Control (ABC), and the Department of Homeland Security (DHS), as well as officers from the Olympic Police Station, appeared at the meeting to inform the karaoke owners of the intensified regulation.
First, the police strongly warned against tax evasion using credit card readers. “In Koreatown karaoke business industry, I know that there are many business owners who use card terminals in other people’s names to evade taxes,” said the police. “The police was already even aware of how the person who lends the card terminal takes a commission of about 7 to 8%.”
The police also announced a crackdown on so-called “early morning business” that violates business hours. “If you violate business hours, you will be shut down immediately upon detection,” said an official from the Olympic Police Station, “Especially if you are caught operating illegal karaoke, you will be shut down, even if the same business owner has a license and is operating normally.”
The announcement of the strict regulation on the karaoke industry comes in the wake of the recent case of Cho Dae-geun (38, alias DK), who extorted money from business owners.
“DK, who was recently indicted, was denied bail,” said an official from the Olympic Police Station, adding, “If there are any other such extortion cases in the future, karaoke business owners should never give money and call the police.”
There were also warnings about female hostesses, who are part of the entertainment culture of the Korean karaoke industry.
“The police even used the Korean word for ‘helper’ and understood that there is such a culture,” said karaoke owner B. “Instead, they emphasized that simple hospitality is okay, but that they will crack down hard on illegal activities such as drugs and prostitution.”
In preparation for the announcement, police and the Liquor Control Bureau reportedly went door-to-door at karaoke bars in Koreatown for several days beforehand, handing out notices to owners.
The high-intensity crackdown is expected to have a modest impact on the unfair karaoke “ecosystem” in Koreatown. “Currently, there are about 15 illegal karaoke bars operating in Koreatown,” said Mr. C, a karaoke bar owner, “and in a nutshell, the ‘early morning business’ owners are going to get burned. Karaoke bars that have been operating normally are in the red, and the early morning business is booming, so I strongly support what the police is doing.”
BY JANG YEOL
