Seungri, a member of the popular K-pop group Bigbang, is facing a police investigation over allegations that he solicited prostitutes for foreign men investing in his business back in 2015.
Korean police said that this was in response to an online report published Tuesday claiming that Seungri had told his employees then to buy sexual services for investors from Taiwan.
Seungri has denied any wrongdoing.
"We asked him about the matter and want to confirm that the article is based on fabricated text messages and is false," the singer's management, YG Entertainment, said.
The agency added that it will be taking legal action against those spreading false rumors, including fake news.
The report in question claimed to have acquired text messages Seungri had written back in 2015, wherein he told employees to procure prostitutes for investors in his investment company.
The investigation comes after police probed Burning Sun, a posh club affiliated with Seungri, for drug use and sexual abuse.
The club closed down earlier this month.
Seungri had apologized for the scandal during one of of the legs of his current tour, which included a stop in Manila in January.
Seungri is expected to to start his mandatory military service in the next two months.