Police have wrapped up their investigation into the sex-for-favors allegations against the former chief of YG Entertainment without confirming the charges, and are expected to forward the case to the prosecution.

The Seoul Metropolitan Police Agency revealed on Friday that it plans to transfer the case against Yang Hyung-suk, who is suspected of mediating prostitution, with a recommendation of non-indictment.

Police said they looked into Yang and YG's financial and phone records from 2014, but weren't able to find objective evidence or obtain testimony proving Yang either solicited or mediated prostitution.

A local broadcaster reported in May that YG Entertainment invited and entertained two investors from Thailand and Malaysia in 2014 and that Yang, a YG artist and a group of women from entertainment establishments were present at the gatherings.

The report also alleged that YG brokered prostitution between the investors and the women during an overseas trip.

Separately, police are also investigating Yang on charges related to overseas gambling and violating foreign exchange laws.

Meanwhile, other allegations have emerged that Yang tried to cover up YG artist B.I's suspected drug use in 2016.