Korean rapper Psy admitted Wednesday that Low Taek Jho, a Malaysian fugitive involved in the 1MDB scandal, was his friend and that he had attended a dinner gathering arranged by Yang Hyun-suk, head of K-pop powerhouse YG Entertainment.
Low, sought by authorities in Malaysia, Singapore and the US in connection with the 1MDB scandal, earlier said through his spokesman that he had met Yang through his friend Psy, denying allegations that he had received sexual services procured by Yang at the dinner party.
The MBC programme "Straight" aired late Monday the allegations that Yang hosted dinner parties and offered sexual services for two wealthy Southeast Asian investors in July 2014. One of the investors was reported to be Low, who was central to the scandal in which US$4.5 billion (S$6.2 billion) was allegedly embezzled from the state investment company. The other was thought to be a Thai man, known as Bob.
"Regardless of whether he was a good friend or not, it is clear that I was his friend," he wrote on his Instagram account. "When Jho Low and his friends visited Korea, Yang and I were invited to a dinner with them. We had the meal and drinks with other guests, and Yang and I left the table early."
When Psy met him, Low had a big presence in Hollywood showbiz industry and Psy introduced Low to Yang, the rapper said in the posting.
"At the time, I just thought it was a dinner gathering with a friend from afar," he said. "I apologise for causing concerns."
The police have opened an investigation into Yang.
At the dinner party for Low and Bob, there were 25 women, including more than 10 prostitutes from an adult entertainment establishment with close ties to YG, and eight men accompanying Yang, according to the TV show.
YG has denied the allegations as "groundless."
The police also began a probe into suspicions the Thai man known as Bob raped a woman last year.